AUSTIN, Texas, Oct. 17, 2011 /PRNewswire/ -- EZCORP, Inc. (Nasdaq: EZPW) announced today that it has acquired substantially all of the assets of Cash Converters United LC, including seven stores in Virginia and Pennsylvania and the franchise rights to use the Cash Converters brand and name in several other states.
The acquired stores operate the Cash Converters buy/sell model rather than the pawn model used in EZCORP's other U.S. stores. EZCORP will continue to operate the stores using the Cash Converters brand and format. The acquired franchise rights include the exclusive right to develop Cash Converters stores in Virginia, North Florida and Eastern Pennsylvania, as well as a right of first refusal to acquire the Cash Converters franchise rights in the District of Columbia and 17 other states in the East, South, Midwest and Southwest.
Eric Fosse, EZCORP's President of North American Operations, stated: "This is a strategically important acquisition for several reasons. First, it gives us an immediate footprint in a new geographic area of operations. This area nicely complements our existing operations in Florida, Georgia and Tennessee, allowing us to leverage our existing management infrastructure. Second, it kicks off our utilization of the Cash Converters brand and the buy/sell format in the United States, a strategy we have been pursuing in Canada for several months now with positive results. And third, it provides us with access to additional opportunities to expand our presence, under the Cash Converters brand, across the U.S."The acquisition was completed on October 12, 2011. About EZCORP EZCORP is a leading provider of specialty consumer financial services. It provides collateralized non- recourse loans, commonly known as pawn loans, and a variety of short-term consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit services to customers seeking loans. At its pawn stores, the company also sells merchandise, primarily collateral forfeited from its pawn lending operations.