- Combination with CURO secures the capital required by Flexiti
to target rapid growth in loan originations within the Canadian
marketplace
- Flexiti signs agreement to increase credit facilities from
$380 million to $500 million
TORONTO, Feb. 1, 2021 /CNW/ - Flexiti Financial Inc.
("Flexiti"), Canada's leading provider of point-of-sale (POS)
consumer financing solutions for retailers, announced today it has
entered into an agreement to be acquired by CURO Group Holdings
Corp. ("CURO") (NYSE: CURO), a market leader in providing credit to
non-prime consumers, for total consideration of C$155 million, based on the achievement of
certain performance targets. The transaction is expected to
close in the first quarter of 2021, subject to certain closing
conditions.
The transaction brings together two companies with complementary
strengths and a range of credit options to help make customers'
lives more affordable and improve their shopping experience.
Founded in 2013, Flexiti has become one of Canada's
fastest-growing buy-now-pay-later (BNPL) financing providers,
offering an instant, omni-channel proprietary platform requiring no
POS integration with its merchant partners. In 2020, Flexiti was
recognized by the Globe and Mail (Canada's Fastest Growing
Companies– ranked 6th), Canadian Business (Growth List –
ranked 3rd), Deloitte (Technology Fast 50 TM
– ranked 6th) and The Financial Times (The Americas'
Fastest Growing Companies – ranked 29th, 2nd
in Canada).
CURO is a North American market leader in providing credit to
non-prime consumers through a network of stores in the U.S. and
Canada and online direct-to-consumer brands. Through this
acquisition, Flexiti will leverage CURO's financial strength,
lending expertise and leadership across the credit spectrum to
strengthen its position as a leading Canadian BNPL solution
provider. Flexiti will continue to operate as a standalone business
in Canada following the close of
the transaction.
Flexiti's omni-channel BNPL solution is available in nearly
6,000 retail locations and websites. Through the FlexitiCard®,
Flexiti's revolving credit line, cardholders can select from
flexible payment plans, including 0% interest1 financing
options. With the broad-spectrum credit expertise provided by CURO,
Flexiti will be able to deepen its credit offering to Canadian
customers and provide financing to even more of its merchant
partners' customers.
In addition, Flexiti announced the signing of an agreement to
increase its credit facilities from $380
million to $500 million.
Flexiti's augmented financing capabilities and the financial
strength of CURO will allow Flexiti to target rapid growth in loan
originations in 2021.
"After founding Flexiti, I knew this business was destined for
exceptional success," said Peter
Kalen, Founder and CEO of Flexiti. "Flexiti continues to
grow at a rapid rate and this transaction will enable us to
accelerate our growth trajectory. I am tremendously proud of the
success that Flexiti has achieved in its seven years of operations
and I have no doubt we are better positioned than ever to provide
great BNPL offerings to our retail partners and cardholders."
"Flexiti is one of Canada's fastest growing BNPL providers with
a market-leading omni-channel FinTech platform. This acquisition
serves as an important milestone for CURO's continued value
creation in Canada allowing the
company to serve customers across all channels and with an expanded
product set," said Don Gayhardt,
President and Chief Executive Officer of CURO. "CURO has been
focused on M&A opportunities that align with our key strategic
growth areas in Canada and card
products and this acquisition accelerates our progress on both
fronts. Beyond the compelling strategic rationale and enhancements
to our long-term growth strategy, Flexiti is a strong cultural fit
for CURO. Credit risk management is a core competency for
both companies that seek to optimize the balance between growth and
prudent credit risk management to maximize long-term
profitability. Both companies structure their businesses
around the value of the omni-channel model, and continually enhance
their product suites to best meet the evolving needs of their
customers. Flexiti's management team and technology are first-rate
and the company is well positioned to execute on a strategic plan
that calls for continued rapid loan origination growth. I'm excited
to welcome Flexiti to the CURO team and look forward to creating
value for all of our stakeholders."
Houlihan Lokey served as
financial advisor and Norton Rose Fulbright
Canada served as legal counsel to Flexiti in this
transaction. Osler, Hoskin and
Harcourt served as legal counsel
to CURO in this transaction.
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O.A.C. Terms and
conditions apply.
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About Flexiti
Flexiti is one of Canada's
fastest-growing point-of-sale lenders, offering customers 0%
interest financing at retailers that sell big-ticket goods like
furniture, appliances, jewellery and electronics. Through its
award-winning buy-now-pay-later platform, customers can be approved
instantly to shop with their FlexitiCard®, which they can use
online or in-store to make multiple purchases, within their credit
limit, without needing to reapply. Accepted at nearly 6,000
locations and ecommerce sites across Canada including The Brick,
Leon's, Staples, Sleep Country, Wayfair, Birks and Peoples
Jewellers, Flexiti aims to make our customers' lives more
affordable and help our retail partners grow their sales by
offering flexible financing options.
Flexiti's technology platform is recognized as market leading,
winning ACT (Advanced Card Technologies) Canada's 2015 Technology
Innovation Award for Payments Benefiting Merchants. In 2017,
Flexiti was recognized in North
America as the Leading Emerging Fintech by LendIt. In 2019,
Flexiti was named Canada's 11th fastest growing company by the
Globe and Mail, ranked 7th in the Deloitte Technology Fast
50TM program, and 40th in Deloitte North America
Technology Fast 500TM. In 2020, Flexiti ranked 29th in
The Americas' 500 Fastest Growing Companies by the Financial Times,
6th in The Globe and Mail's Canada's Top Growing Companies, 3rd on
the 2020 Growth List and 6th and 39th on Deloitte Technology Fast
50TM and Fast 500TM, respectively.
For more information, visit www.flexiti.com.
About CURO
CURO Group Holdings Corp. (NYSE: CURO),
operating in two countries and powered by its fully integrated
technology platform, is a provider of credit to non-prime
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
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
non-prime consumers.
For more information, visit www.curo.com.
SOURCE Flexiti Financial Inc.