CURO to Acquire Ad Astra Recovery Services, Inc.
December 16 2019 - 8:45AM
Business Wire
CURO Group Holdings Corp. (NYSE: CURO) (“CURO”), a market leader
in providing short-term credit to underbanked consumers, announced
today that it has signed an agreement to acquire Ad Astra Recovery
Services, Inc. (“Ad Astra”).
CURO entered into a Stock Purchase Agreement to acquire Ad Astra
for a base purchase price of $15.8 million, subject to customary
adjustments for net-working capital, cash and debt (the
“Transaction”). Closing of the Transaction is subject to regulatory
approval in the various jurisdictions in which Ad Astra operates
and other customary closing conditions.
Ad Astra currently provides third-party account servicing and
recovery for CURO’s owned and managed loans that are in later-stage
delinquency. It is the exclusive third-party servicer that CURO
currently utilizes in the U.S. and CURO is Ad Astra’s only
client.
“We are always looking for opportunities to drive greater
efficiencies in our business and to ensure a seamless journey for
our customers, including account servicing and recoveries.” said
Don Gayhardt, President and CEO. “To that end, we are excited to
buy Ad Astra, our third-party servicing and recovery provider in
the U.S. and to have their 81 employees join our team in Wichita,
Kansas. We believe that together we can delivery improved recovery
performance at a reduced cost.”
Benefits from the acquisition are expected to include:
- Bringing all U.S. servicing and recovery in-house
- Driving operational synergies to ensure all aspects of the
recovery portfolio are worked in-sync
- Increasing level of operational redundancy and peak volume
management
- Improving compliance synergies
- Facilitating integrated and personalized CRM strategies and
campaign management across the servicing and recovery
lifecycle
The Company expects the acquisition to be accretive to 2020
pre-tax earnings by approximately $5.0 to $6.0 million, or $.08 to
$.10 of net income per fully-diluted share.
ABOUT CURO
CURO Group Holdings Corp. (NYSE: CURO), operating in two
countries and powered by its fully integrated technology platform,
is a market leader by revenues in providing short-term credit to
underbanked consumers. In 1997, the Company was founded in
Riverside, California by three Wichita, Kansas childhood friends to
meet the growing consumer need for short-term loans. Their success
led to opening stores across the United States and expanding to
offer online loans and financial services across two countries.
Today, CURO combines its market expertise with a fully integrated
technology platform, omni-channel approach and advanced credit
decisioning to provide an array of short-term credit products
across all mediums. CURO operates under a number of brands
including Speedy Cash®, Rapid Cash®, Cash Money®, LendDirect®, Avío
Credit®, Opt+® and Revolve Finance®. With over 20 years of
operating experience, CURO provides financial freedom to the
underbanked.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These
forward-looking statements include statements regarding the
Company’s expectation of the benefits of the announced agreement.
In addition, words such as “guidance,” “estimate,” “anticipate,”
“believe,” “forecast,” “step,” “plan,” “predict,” “focused,”
“project,” “is likely,” “expect,” “intend,” “should,” “will,”
“confident,” variations of such words and similar expressions are
intended to identify forward-looking statements. Our ability to
achieve these forward-looking statements is based on certain
assumptions and judgments, including our ability to execute on our
business strategy, our ability to accurately predict our future
financial results and our ability to effectively integrate Ad
Astra’s operations into our own. These assumptions and judgments
may prove to be inaccurate in the future. These forward-looking
statements are not guarantees of future performance and involve
known and unknown risks and uncertainties that are difficult to
predict with regard to timing, extent, likelihood and degree of
occurrence. There are important factors both within and outside of
our control that could cause our actual results to differ
materially from those in the forward-looking statements. These
factors include our level of indebtedness; errors in our internal
forecasts; our dependence on third-party lenders to provide the
cash we need to fund our loans and our ability to affordably access
third-party financing; actions of regulators and the negative
impact of those actions on our business; our ability to protect our
proprietary technology and analytics and keep up with that of our
competitors; disruption of our information technology systems that
adversely affect our business operations; ineffective pricing of
the credit risk of our prospective or existing customers;
inaccurate information supplied by customers or third parties could
lead to errors in judging customers’ qualifications to receive
loans; improper disclosure of customer personal data; failure of
third parties who provide products, services or support to us; any
failure of third-party-lenders upon whom we rely to conduct
business in certain states; disruption to our relationships with
banks and other third-party electronic payment solutions providers;
disruption caused by employee or third-party theft and errors in
our stores as well as other factors discussed in our filings with
the Securities and Exchange Commission. Given these risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual future
results. We undertake no obligation to update, amend or clarify any
forward-looking statement for any reason.
ABOUT AD ASTRA
Founded in 2007, Ad Astra specializes in the collection of
delinquent consumer loan receivables across the U.S. exclusively
for CURO Group Holdings Corp. Ad Astra’s collections operations
primarily consist of call center customer contact and legal
recoveries, including mailing campaigns. Led by a management team
with deep industry expertise, Ad Astra employs more than 80
employees in Wichita, Kansas. Ad Astra is owned by the founders of
CURO, who are also significant stockholders of CURO and members of
CURO’s board of directors.
(CURO-NWS)
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version on businesswire.com: https://www.businesswire.com/news/home/20191216005180/en/
Investor Relations: CURO Group Holdings Corp. Roger Dean
Executive Vice President & Chief Financial Officer 844-200-0342
IR@curo.com or Global IR Group Gar Jackson 949-873-2789
gar@globalirgroup.com
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