Curo Group Holdings Corp. (NYSE: CURO), a provider of credit to non-prime consumers, completed the previously announced acquisition of Flexiti Financial. Inc., a Canadian point-of-sale (“POS”) / buy-now-pay-later (“BNPL”) provider.
The transaction included cash at closing of $86m and contingent consideration of up to $36m 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 from $300m to $395m funded by Credit Suisse AG and SPF Securitized Products Master Fund Ltd.
The acquisition provides CURO instant capability and scale opportunity in Canada’s credit card and POS financing markets.
Flexiti offers customers flexible payment plans at retailers that sell goods such as furniture, appliances, jewelry and electronics. Through its BNPL platform and proprietary technology, customers can be approved instantly to shop with their FlexitiCard, which they can use online or in-store to make multiple purchases, within their credit limit, without needing to reapply.
It is accepted at nearly 6,000 locations and ecommerce sites across Canada including The Brick, Leon’s, Staples, Sleep Country, Wayfair, Birks and Peoples Jewellers.