CURO Group, a provider of credit for non-prime consumers, completed its previously announced acquisition of Flexiti Financial, a Canadian point-of-sale/buy-now-pay-later provider. The transaction included cash at closing of $86 million and contingent consideration of up to $36 million based on the achievement of risk-adjusted revenue and origination targets over the next two years based upon exchange rates at the time of closing.
In connection with the transaction, Flexiti and a related entity refinanced and expanded its nonrecourse asset-backed warehouse financing facility, which is funded by Credit Suisse and SPF Securitized Products Master Fund, from $300 million to $395 million.
“We are excited to announce the completion of the acquisition of Flexiti, one of Canada’s fastest-growing BNPL providers with a market-leading omnichannel fintech platform,” Don Gayhardt, CEO of CURO, said. “The acquisition of Flexiti enhances CURO’s long-term growth and financial and risk profiles and allows us to access the full spectrum of Canadian consumers by adding an established private label credit card platform and POS financing capabilities. We now reach consumers in Canada through all the ways they access credit, directly both in-store and online, via credit cards or at the point of sale. We welcome Flexiti’s more than 2,000 merchant partners and look forward to continuing to provide them with industry-leading service and solutions to improve sales and customer satisfaction.”