Affirm to Acquire Returnly
April 21 2021 - 09:00AM
Business Wire
Transaction Adds Online Return Solutions to
Affirm’s Product Portfolio
Affirm Holdings, Inc. (NASDAQ:AFRM) today announced that it has
entered into a definitive agreement to acquire Returnly, a leader
in online return experiences and post-purchase payments. Under the
terms of the agreement, Affirm will acquire Returnly for total cash
and equity consideration of approximately $300 million.
Returnly serves more than 1,800 merchants, has helped process
more than $1 billion in returns, and has been used by over eight
million shoppers. With Returnly, eligible consumers receive an
instant merchant credit upon initiating a return, allowing them to
order a new or replacement item immediately versus waiting until
their return is fully processed. Returnly takes the product return
risk and settles orders in real time, making returns and exchanges
seamless and helping merchants drive higher return-to-repurchase
rates, increased revenue from returns and higher customer
satisfaction.
“Over the last few years, alongside the rapid growth of online
shopping, consumers’ expectations of accommodations for returns and
exchanges have increased significantly,” said Max Levchin, CEO and
founder of Affirm. “In 2019, Affirm invested in Returnly because we
recognized their technology’s ability to help merchants remove
friction from returns, drive loyalty, and retain more customers.
Store credit, issued before the item is actually returned, is now a
practical requirement in highly competitive segments like fashion
and lifestyle. We are excited to bring Returnly’s powerful product
to our merchants, and we are thrilled to introduce their more than
eight million users to the transparent, gotcha-free version of
buy-now-pay-later as made possible only by Affirm.”
Affirm’s acquisition comes as returns continue to be a source of
increased costs and complexities for merchants. U.S. consumers
returned an estimated $428 billion in merchandise to retailers in
2020. Online returns, which often occur at triple the rate of brick
and mortar retail, more than doubled in 2020 from 2019.
“We started Returnly to fix the broken returns model that
offered consumers and merchants nothing but downside and
frustration,” said Eduardo Vilar, CEO and founder of Returnly. “As
returns continue to challenge and inhibit commerce, we believe that
now is the right time to join forces with Affirm and expand the
reach of our mission. We look forward to continuing to serve our
customers and help more businesses offer the instant and easy
returns experience that their shoppers have come to expect.”
The transaction is expected to close in Affirm’s fourth fiscal
quarter ending June 30, 2021, and is subject to customary closing
conditions. The acquisition is not expected to have a material
impact on Affirm’s second half 2021 fiscal year results of
operations.
About Affirm
Affirm’s mission is to deliver honest financial products that
improve lives. By building a new kind of payment network — one
based on trust, transparency and putting people first — we empower
millions of consumers to spend and save responsibly, and give
thousands of businesses the tools to fuel growth. Unlike credit
cards and other pay-over-time options, we show consumers exactly
what they will pay up front, never increase that amount, and never
charge any late or hidden fees. Follow Affirm on social media:
LinkedIn | Instagram | Facebook | Twitter.
About Returnly
Returnly is a leading provider of digital return experiences and
post-purchase payments for direct-to-consumer brands. Returnly is
the only return solution that lets customers get the right item
before returning the wrong one. The result is a world-class
shopping experience with an average consumer satisfaction score
(CSAT) of 91%. Returnly takes the product return risk and offers
merchants a turn-key solution around its financial technology that
includes return management tools as well as hosted and fully
brandable end-customer touchpoints like package tracking, online
returns and exchanges and Green Returns. To learn more about
Returnly’s solutions, please visit www.returnly.com.
AFRM-F
Payment options through Affirm are subject to eligibility, and
are provided by these lending partners: affirm.com/lenders. CA
residents: Loans by Affirm Loan Services, LLC are made or arranged
pursuant to California Finance Lender license 60DBO-111681.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties and assumptions. In some cases,
forward-looking statements may be identified by words such as
"design," "expect," "may," "plan," "should," "will," “would,” or
the negative of these terms or other similar expressions. All
statements other than statements of historical fact are
forward-looking statements, including statements regarding: the
expected benefits and costs of the transaction; management plans
relating to the transaction; the expected timing of the completion
of the transaction; the ability to complete the transaction
considering the various closing conditions; statements of the
plans, strategies and objectives of management for future
operations; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. These
statements involve known and unknown risks, uncertainties and other
important factors that may cause Affirm's actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Risks, uncertainties and
assumptions include the possibility that expected benefits of the
transaction may not materialize as expected; that the transaction
may not be timely completed, if at all; that, prior to the
completion of the transaction, Returnly’s business may not perform
as expected due to transaction-related uncertainty or other
factors; that the parties are unable to successfully implement
integration strategies; and the other risks that are described in
Affirm’s Quarterly Report on Form 10-Q for the fiscal quarter ended
December 31, 2020 and in its other filings with the U.S. Securities
and Exchange Commission. These forward-looking statements reflect
Affirm’s views with respect to future events as of the date hereof,
and Affirm assumes no obligation to, and does not intend to, update
these forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210421005400/en/
Media press@affirm.com
Investors ir@affirm.com
Affirm (NASDAQ:AFRM)
Historical Stock Chart
From Feb 2024 to Mar 2024
Affirm (NASDAQ:AFRM)
Historical Stock Chart
From Mar 2023 to Mar 2024