Dollar Financial Corp Completes Acquisition of Risicum, the Leading Provider of Internet Loans in Finland
July 06 2011 - 9:00AM
Business Wire
Dollar Financial Corp (NASDAQ:DLLR), a leading international
diversified financial services company serving primarily unbanked
and under-banked consumers for over 30 years, today announced the
acquisition of Risicum Oyj (“Risicum”), the leading provider of
internet loans in Finland with headquarters in Helsinki, Finland.
Risicum, which was established in 2005, provides loans
predominantly in Finland through both internet and mobile phone
technology, utilizing multiple brands to target specific customer
demographics. Risicum also provides internet and telephony-based
loans in Sweden. The total purchase price of the transaction at
closing was approximately $46.0 million.
Commenting on the acquisition, Jeff Weiss, the Company’s
Chairman and Chief Executive Officer, stated, “We are pleased to
welcome the Risicum management team into the Dollar family and
intend to leverage their expertise in Dollar’s continuing
development of a global internet lending business. The acquired
technology and collections platform is scalable for growth and
originally designed to be exported to other countries in
Scandinavia and the Baltics. The acquisition further expands our
global footprint and product portfolio to unsecured short-term
loans in Finland and Sweden, which nicely dovetails with our
position as the leading pawn lender in Scandinavia. Scandinavia
continues to be a strategic market for our products and services
with long-standing product regulations coupled with a fragmented
competitive landscape.
"It is our mission to be the leading global provider of
financial services to the under-banked and unbanked consumer, which
we refer to as the ALICE demographic (or asset limited, income
constrained, employed). The ALICE customer segment is increasing
all around the globe, and we are squarely focused on expanding our
set of products and services and delivery platforms in existing and
new markets to meet their growing financial services needs. We
believe one of the most efficient and cost-effective ways to enter
new markets and access the growing ALICE population is through an
internet-based product delivery platform, as it enables quicker
access to these customers without having to construct a more
expensive ‘brick and mortar” store network. Furthermore, we believe
the ever growing consumer awareness and advancement of eCommerce
technology throughout the world will result in a trend towards a
preference for quick and easy web or telephony based financial
transactions. In order to maintain our position as the leading
global provider of financial services to the unbanked and
under-banked consumers, we need to be on the leading edge of this
technological revolution. As a result of this acquisition, we now
offer internet loans in four countries (U.K., Finland, Sweden, and
Canada).”
The trailing twelve months EBITDA for Risicum is approximately
$9.2 million and the acquisition is expected to be immediately
accretive to earnings. The Company expects to provide its initial
earnings outlook for fiscal 2012, including the Risicum business
net of acquisition and transition costs, when the Company announces
its financial results for the fiscal year ended June 30, 2011.
About Dollar Financial Corp
Dollar Financial Corp is a leading international diversified
financial services company primarily serving unbanked and
under-banked consumers and small business owners for over 30 years.
Through its retail storefront locations as well as by other means,
such as via the Internet, the Company provides a range of consumer
financial products and services in seven countries (Canada, the
United Kingdom, the United States, the Republic of Ireland, Sweden,
Finland and Poland) to consumers who, for reasons of convenience
and accessibility, purchase some or all of their financial services
from the Company rather than from banks and other financial
institutions. The Company’s products, principally its short-term
consumer loans, check cashing services, secured pawn loans and gold
buying services, provide customers with immediate access to cash
for living expenses or other episodic needs. The Company also
offers high-value ancillary services, including Western Union money
order and money transfer products, electronic tax filing,
reloadable VISA® and MasterCard® debit cards, foreign currency
exchange, and other services. In addition, through its branded
Military Installment Loan and Education Services, or MILES®
program, the Company provides fee based services to enlisted
military personnel applying for loans to purchase new and used
vehicles that are funded and serviced under an exclusive agreement
with a major third-party national bank.
At March 31, 2011, the Company’s global retail operations
consisted of 1,236 locations, including 1,144 company-operated
financial services stores and 92 franchised and agent locations,
conducting business primarily under the names Money Mart®, Money
Shop®, Insta-Cheques®, The Check Cashing Store®, Sefina and
MoneyNow® in Canada, the United Kingdom, the United States, the
Republic of Ireland, Sweden, Finland and Poland. For more
information, please visit the Company's website at www.dfg.com.
Dollar Financial Forward Looking Statement
This news release contains forward looking statements,
including, among other things, statements regarding the following:
pending or recent acquisitions and their expected benefits; the
Company’s future results, growth, guidance and operating strategy;
the global economy; the effects of currency exchange rates on
reported operating results; the developing regulatory environment
in Canada, the United Kingdom, the United States, and other
countries; the impact of future development strategy, new stores
and acquisitions; litigation matters; expected financing
initiatives; and the performance of new products and services.
These forward looking statements involve risks and uncertainties,
including risks related to: the regulatory environments; current
and potential future litigation; the identification of acquisition
targets; the consummation of announced pending acquisitions, the
integration and performance of acquired stores and businesses; the
performance of new stores; the impact of debt financing
transactions; the results of certain ongoing income tax appeals;
and the effects of new products and services on the Company’s
business, results of operations, financial condition, prospects and
guidance; and uncertainties related to the effects of changes in
the value of the U.S. Dollar compared to foreign currencies. There
can be no assurance that the Company will attain its expected
results, successfully consummate announced pending acquisitions,
successfully integrate any of its acquisitions, obtain acceptable
financing, or attain its published guidance metrics, or that
ongoing and potential future litigation or the various FDIC,
Federal, state, Canadian, U.K. or foreign legislative or regulatory
activities affecting the Company or the banks with which the
Company does business will not negatively impact the Company’s
operations. A more complete description of these and other risks,
uncertainties and assumptions is included in the Company’s filings
with the Securities and Exchange Commission, the Company’s annual
reports and Forms 10-Q and 10-K. You should not place any undue
reliance on any forward-looking statements. The Company disclaims
any obligation to update any such factors or to publicly announce
results of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.
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