Lending

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

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

CURO Group Holdings Corp. (NYSE: CURO) (“CURO”), a market chief in offering credit score to non-privileged customers, right this moment introduced that it’s positioned to profit from right this moment’s announcement by Katapult Holding, Inc. (“Katapult”), an organization roughly 40% owned by CURO and a number one supplier of on-line point-of-sale (“POS”) leasing buy choices for non-US customers. privileged, and FinServ Acquisition Corp. (Nasdaq: FSRV) (“FinServ”), a publicly traded Particular Objective Acquisition Firm (“SPAC”), have 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 in extra widespread shares within the new public firm.

Primarily based on CURO’s stake in Katapult, the transaction introduced right this moment will present consideration consisting of a mix 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 extra 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 modern e-commerce point-of-sale enterprise mannequin, a give attention to the massive non-priority finance market, and a transparent and compelling worth proposition for merchants and customers. “We’ve appreciated our partnership with the skilled and gifted administration crew at Katapult and are happy with the milestones they’ve taken to make right this moment’s announcement potential,” stated Don Gayhardt, President and CEO. the administration of CURO and member of the board of administrators of Katapult. Katapult CEO Orlando Zayas and the corporate’s administration crew are high notch and we consider Katapult is nicely positioned to proceed to achieve success as a public firm with even better 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 improve our money balances, offering better stability sheet flexibility for potential alternatives, together with strategic mergers and acquisitions that can broaden our product providing. and our attain available in the market. As well as, we’ll retain a major stake in Katapult and have illustration on the board of administrators of the newly opened firm. This offers us the chance to proceed to take part sooner or later course of Katapult, in order that the corporate strengthens its place as a number one on-line point-of-sale financing platform targeted on main customers, ”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 totally diluted shares of the brand new public firm. The ultimate composition of the cash-to-equity consideration will fluctuate 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 situations. As detailed within the press launch from Katapult and FinServ, the Boards of Administrators of Katapult and FinServ unanimously accepted the transaction.

Extra particulars on the transaction could 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 offers for informational functions solely.

A further investor presentation offering extra particulars on the affect of the transaction on CURO is accessible within the “Occasions and Displays” part of the CURO Investor web site at https://ir.curo.com/events-and-presentations.

Ahead-looking statements

This press launch comprises forward-looking statements. These forward-looking statements embody statements relating to projections, estimates and assumptions relating to the worth of Katapult’s fairness; the affect of the transaction on CURO, together with the entire consideration we anticipate to obtain and the money and fairness combine and potential top-up; the meant 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”, “consider”, “anticipate”, “step”, “plan”, “predict”, “goal”, “plan”, “” s ‘anticipate’, ‘intend’, ‘ought to’, ‘will’, ‘assured’, variations of those phrases and related expressions are meant to determine forward-looking statements. The flexibility to make these forward-looking statements is predicated on sure assumptions, judgments and different components, 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 will not be obtained, be delayed or be topic to unexpected situations that would adversely have an effect on the mixed firm or the anticipated advantages of the proposed transaction or that FinServ shareholder approval is just not obtained; failure to understand the anticipated advantages of the proposed transaction; dangers associated to the uncertainty of projected monetary data regarding Katapult; the consequences of competitors on Katapult’s future enterprise; Katapult’s capability to draw and retain clients; market, monetary, political and authorized situations; the affect of the COVID-19 pandemic on Katapult, our enterprise, and the worldwide financial 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 subject 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 celebration lenders to offer the liquidity we have to fund our online loans and our capability to entry inexpensive third celebration financing; errors in our inner forecasts; our stage of debt; our capability to combine acquired companies; our dependence on third celebration lenders to offer the liquidity we have to fund our loans and our capability to entry inexpensive third celebration financing; the actions of regulators and the adverse affect of those actions on our actions; our capability to guard our proprietary expertise and analytics and to trace these of our rivals; disruption of our data expertise programs that intervene with our enterprise operations; inefficient pricing of the credit score danger of our potential or present clients; inaccurate data supplied by shoppers or third events which may result in errors within the evaluation of shoppers’ {qualifications} to obtain loans; incorrect disclosure of buyer private knowledge; failure of third events who present us with merchandise, providers or help; any failure of third celebration 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 celebration theft and errors in our shops; and different components mentioned in our filings with the Securities and Trade Fee. These projections, estimates and assumptions may show to be inaccurate sooner or later. These forward-looking statements will not be ensures of future efficiency and contain recognized and unknown dangers and uncertainties that are troublesome to foretell as to the timing, extent, probability and diploma of prevalence. There could also be extra dangers that aren’t at the moment recognized to us or that we at the moment consider 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 cause.

About CURO

CURO Group Holdings Corp. (NYSE: CURO), working in two international locations and powered by its totally built-in expertise platform, is a supplier of unprivileged client credit score. In 1997, the corporate was based in Riverside, Calif., By three childhood associates 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. In the present day, CURO combines its market experience with a totally built-in expertise platform, omnichannel method and superior credit score resolution making to ship a variety of credit score merchandise throughout all mediums. CURO operates beneath a variety 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 customers.

(CURO-NWS)

See the supply model on businesswire.com: https://www.businesswire.com/information/residence/20201218005409/en/

Contacts

Investor Relations:
Roger dean
Government Vice President and Chief Monetary Officer
Phone: 844-200-0342
E-mail: [email protected]
Or
Monetary Profiles, Inc.
[email protected]

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