CURO Group Holdings Corp. positioned to learn from the introduced merger of Katapult with FinServ Acquisition Corp.

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Over $ 900 Million Transaction Supplies Complete Consideration of $ 365 Million to CURO

WICHITA, Kan – (BUSINESS WIRE) – CURO Group Holdings Corp. (NYSE: CURO) (“CURO”), a market chief in offering credit score to non-privileged shoppers, at this time introduced that it’s positioned to learn from at this time’s announcement by Katapult Holding, Inc. (“Katapult”), an organization roughly 40% owned by CURO and a number one supplier of point-of-sale (“POS”) e-commerce leasing buy choices for non-US shoppers. privileged, and FinServ Acquisition Corp. (Nasdaq: FSRV) (“FinServ”), a publicly traded Particular Goal Acquisition Firm (“SPAC”), has entered right into a definitive merger settlement. The transaction values ​​Katapult’s fairness at $ 908 million, which features a earn-out of as much as $ 75 million within the type of further widespread shares within the new public firm.

Based mostly on CURO’s stake in Katapult, the transaction introduced at this time will present consideration consisting of a mixture of money and shares of the brand new firm to CURO of $ 365 million, which features a earn-out of as much as $ 30 million in further widespread inventory within the new state-owned firm. To this point, CURO has invested a complete of $ 27.5 million in Katapult.

“We began investing in Katapult in 2017 by figuring out a number of catalysts for future success: an revolutionary e-commerce point-of-sale enterprise mannequin, a deal with the massive non-priority finance market, and a transparent and compelling worth proposition for merchants and shoppers. . We’ve appreciated our partnership with the skilled and proficient administration staff at Katapult and are pleased with the milestones they’ve taken to make at this time’s announcement doable, ”mentioned Don Gayhardt, President and CEO. administration of CURO and member of the board of administrators of Katapult. “Katapult CEO Orlando Zayas and the corporate’s administration staff are high notch and we imagine Katapult is nicely positioned to proceed to achieve success as a public firm with even higher entry to capital, a model improved and accelerated development trajectory.

“This transaction is a transparent victory for CURO and its shareholders. As soon as accomplished, the transaction will enhance our money balances, offering higher stability sheet flexibility for potential alternatives, together with strategic mergers and acquisitions that may broaden our product providing and market attain. As well as, we’ll retain a big stake in Katapult and we shall be represented on the board of administrators of the brand new public firm. This offers us the chance to proceed to take part sooner or later path of Katapult, as the corporate strengthens its place as a number one on-line point-of-sale financing platform centered on non-privileged shoppers, ”concluded Gayhardt. .

Upon closing of the transaction, CURO expects to obtain as much as $ 125 million in money and retain a minimal 21% stake within the absolutely diluted shares of the brand new public firm. The ultimate composition of the cash-to-equity consideration will range primarily based on PSPC investor redemptions and sure different changes. The transaction is anticipated to shut within the first half of 2021 and stays topic to FinServ shareholder approval and different customary closing circumstances. As detailed within the press launch from Katapult and FinServ, the Boards of Administrators of Katapult and FinServ unanimously authorised the transaction.

Extra particulars on the transaction may be discovered within the press launch and investor presentation of Katapult and FinServ, which can be found within the “Buyers” sections of the FinServ web site at https://finservacquisition.com and the Katapult web site at https://go.katapult.com/investor_relations, which CURO gives for informational functions solely.

An extra investor presentation offering extra particulars on the influence of the transaction on CURO is obtainable within the “Occasions and Shows” part of the CURO Investor web site at https://ir.curo.com/events-and-presentations.

Ahead-looking statements

This press launch incorporates forward-looking statements. These forward-looking statements embody statements concerning projections, estimates and assumptions concerning the worth of Katapult’s fairness; the influence of the transaction on CURO, together with the entire consideration we count on to obtain and the money and fairness combine and potential top-up; the supposed makes use of of this consideration and our expectations for elevated money balances; CURO’s possession and curiosity in Katapult after the closing of the transaction; Katapult’s future success; and the anticipated timing of the transaction. As well as, phrases similar to “recommendation”, “estimate”, “anticipate”, “imagine”, “foresee”, “step”, “plan”, “foresee”, “focused”, “plan”, “is probably going”. “,” “Count on”, “intend”, “ought to”, “will”, “assured”, variations of those phrases and related expressions are supposed to establish forward-looking statements. The power to make these forward-looking statements relies on sure assumptions, judgments and different elements, each inside our management and past our management, which may trigger precise outcomes to vary materially from these of forward-looking statements, together with: ” incapability of the events to efficiently or well timed full the proposed transaction, together with the danger that the required regulatory approvals is probably not obtained, be delayed or be topic to unexpected circumstances that might adversely have an effect on the mixed firm or the anticipated advantages of the proposed transaction or that FinServ shareholder approval will not be obtained; failure to appreciate the anticipated advantages of the proposed transaction; dangers associated to the uncertainty of projected monetary info regarding Katapult; the results of competitors on Katapult’s future enterprise; Katapult’s capability to draw and retain clients; market, monetary, political and authorized circumstances; the influence of the COVID-19 pandemic on Katapult, our enterprise, and the worldwide economic system; the dangers related to the focus of Katapult’s actions on a comparatively small variety of retailers; the power of FinServ or the mixed firm to concern fairness or fairness associated securities or to acquire debt financing as a part of the proposed transaction or sooner or later; our dependence on third get together lenders to supply the liquidity we have to fund our loans and our capability to entry reasonably priced third get together financing; errors in our inner forecasts; our stage of debt; our capability to combine acquired companies; our dependence on third get together lenders to supply the liquidity we have to fund our loans and our capability to entry reasonably priced third get together financing; the actions of regulators and the destructive influence of those actions on our actions; our capability to guard our proprietary expertise and analytics and to trace these of our opponents; disruption of our info expertise techniques that intrude with our enterprise operations; inefficient pricing of the credit score danger of our potential or present clients; inaccurate info offered by shoppers or third events which may result in errors within the evaluation of shoppers’ {qualifications} to obtain loans; incorrect disclosure of buyer private information; failure of third events who present us with merchandise, providers or assist; any failure of third get together lenders we depend on to do enterprise in sure states; disruption of {our relationships} with banks and different suppliers of third-party digital cost options; disruption attributable to worker or third get together theft and errors in our shops; and different elements mentioned in our filings with the Securities and Change Fee. These projections, estimates and assumptions may show to be inaccurate sooner or later. These forward-looking statements usually are not ensures of future efficiency and contain identified and unknown dangers and uncertainties that are troublesome to foretell as to the timing, extent, probability and diploma of incidence. There could also be further dangers that aren’t presently identified to us or that we presently imagine are negligible and which may additionally trigger precise outcomes to vary from these contained in forward-looking statements. Given these dangers and uncertainties, buyers shouldn’t place undue reliance on forward-looking statements as a prediction of precise future outcomes. We assume no obligation to replace, modify or make clear any forward-looking assertion for any purpose.

About CURO

CURO Group Holdings Corp. (NYSE: CURO), working in two international locations and powered by its absolutely built-in expertise platform, is a supplier of unprivileged client credit score. In 1997, the corporate was based in Riverside, Calif., By three childhood mates from Wichita, Kansas, to satisfy rising client wants for short-term loans. Their success led to opening shops in the US and increasing to supply on-line loans and monetary providers in two international locations. Immediately, CURO combines its market experience with a completely built-in expertise platform, omnichannel method and superior credit score choice making to ship a variety of credit score merchandise throughout all mediums. CURO operates beneath a lot of manufacturers together with Speedy Money®, Speedy Money®, Money Cash®, LendDirect®, Avío Credit score®, Choose + ® and Revolve Finance®. With over 20 years of working expertise, CURO provides monetary freedom to unprivileged shoppers.


Investor Relations:

Roger dean

Govt Vice President and Chief Monetary Officer

Phone: 844-200-0342

E-mail: [email protected]


Monetary Profiles, Inc.

[email protected]

Supply: CURO Group Holdings Corp.

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