U.S. tech platform CURO Group Holdings Corp. (NYSE: CURO) announced on Thursday it has completed the acquisition of Flexiti Financial. Inc., a Canadian point-of-sale (POS) / buy-now-pay-later (BNPL) provider. According to Curo, the transaction included cash at closing of $86 million and contingent consideration of up to $36 million based on the achievement of risk-adjusted revenue and origination targets over the next two years based upon exchange rates at the time of closing.
As previously reported, CURO further revealed the acquisition of Flexiti further diversifies CURO’s revenue mix by product and geography and accesses the full spectrum of Canadian consumers by adding an established omnichannel private label credit card platform and POS financing capabilities.
“Flexiti primarily serves prime consumers and the combination presents significant revenue and earnings growth opportunities by using CURO’s expertise to expand Flexiti’s non-prime product offerings. The transaction also provides the opportunity to leverage CURO’s loan servicing experience to improve Flexiti’s profit margins.”
CURO also recently explained that the combination of it and Flexiti brings together two complementary businesses with like-minded management teams to serve prime and non-prime Canadian consumers directly or at the POS. In connection with the transaction, Flexiti refinanced and expanded its non-recourse asset-backed warehouse financing facility from $296 million to $390 million. Don Gayhardt, CEO of CURO, spoke about the acquisition by stating:
“The acquisition of Flexiti enhances CURO’s long-term growth and financial and risk profiles and allows us to access the full spectrum of Canadian consumers by adding an established private label credit card platform and POS financing capabilities. We now reach consumers in Canada through all the ways they access credit, directly both in-store and online, via credit cards or at the point of sale. We welcome Flexiti’s more than 2,000 merchant partners and look forward to continuing to provide them with industry-leading service and solutions to improve sales and customer satisfaction.”
CURO then concluded that in connection with the transaction, Flexiti and a related entity refinanced and expanded its nonrecourse asset-backed warehouse financing facility from $300 million to $395 million funded by Credit Suisse AG and SPF Securitized Products Master Fund Ltd.