… the acquisition of Flexiti further diversifies CURO’s revenue mix by product and geography and accesses the full spectrum of Canadian consumers by adding an established omnichannel private label credit card platform and POS financing capabilities.
“Flexiti primarily serves prime consumers and the combination presents significant revenue and earnings growth opportunities by using CURO’s expertise to expand Flexiti’s non-prime product offerings. The transaction also provides the opportunity to leverage CURO’s loan servicing experience to improve Flexiti’s profit margins.”
CURO also noted the combination of it and Flexiti brings together two complementary businesses with like-minded management teams to serve prime and non-prime Canadian consumers directly or at the POS. In connection with the transaction, Flexiti refinanced and expanded its nonrecourse asset-backed warehouse financing facility from $296 million to $390 million. Don Gayhardt, President and CEO of CURO, spoke about the acquisition by stating: