Tech Platform CURO Set to Acquire Canadian Point-of-Sale Provider Flexiti For $121 Million

U.S. tech platform CURO Group Holdings Corp. (NYSE: CURO) announced on Monday it is set to acquire Canada-based point-of-sale financing and payment tech provider Flexiti. CURO reported that under the terms of the agreement, it will acquire Flexiti for cash at closing of $85 million. The transaction also includes contingent consideration of up to $36 million based on the achievement of risk-adjusted revenue and origination targets over the next two years.

CURO further revealed 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:

“CURO has been focused on M&A opportunities that align with our key strategic growth areas in Canada and cards, and this acquisition accelerates our progress on both fronts. Beyond the compelling strategic rationale and enhancements this transaction brings to our long-term growth strategy, Flexiti is a strong cultural fit for CURO.”

Peter Kalen, founder and CEO of Flexiti, then concluded:

“Flexiti continues to grow at a rapid rate and this transaction will enable us to accelerate our growth trajectory. I am tremendously proud of the success that Flexiti has achieved in its seven years of operations and I have no doubt we are better positioned than ever to provide great BNPL offerings to our retail partners and cardholders.”

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