First Cash to purchase money America for $994 Million in Pawn contract

First Cash to purchase money America for $994 Million in Pawn contract

First Cash Financial solutions Inc. consented to purchase money America Overseas Inc. for about $994 million in stock in a deal to create together two for the biggest retail pawn store operators when you look at the U.S.

Thursday first Cash, based in Arlington, Texas, will pay 0.84 of its shares for each Cash America share, the pair said in a statement. The deal, that your businesses called a merger of equals, values Fort Worth, Texas-based money America at $40.90 a share, near Wednesday’s shutting cost of $40.70.

The combined business, become called FirstCash, would have significantly more than 2,000 places in four nations, which makes it a powerhouse into the non-bank financing market, a catchall term for pawn brokers, check-cashing organizations, payday loan providers among others that offer small-dollar loans to individuals that real time paycheck to paycheck. It’s a very fragmented market, providing into the projected 50 million individuals into the U.S. that don’t do company with conventional banking institutions.

It might additionally shore up First Cash’s place when you look at the U.S., offering it more scale to better compete keenly against competing pawn store operator Ezcorp Inc. as well as other lenders that are non-bank as World Acceptance Corp. and OneMain Holdings Inc. The combined business will also have 936 places in Latin America and concentrate on expanding its company here, including in Colombia and Peru, professionals told analysts for a meeting call.

Higher Dividend

The offer will add ten percent to First Cash’s expected earnings next 12 months and 35 % to money America’s, the firms stated. […]