Nov. 27, 2012
/PRNewswire/ -- EZCORP, Inc. (NASDAQ: EZPW) announced today that it has continued to expand its capabilities to deliver integrated instant cash solutions to customers across multiple channels, formats and geographies.
EZCORP has entered into a definitive agreement with Go Cash, LLC and certain of its affiliates to acquire substantially all the assets of Go Cash's online lending business (
Upon completion of the acquisition,
James R. Carnes
, the founder and president of Go Cash, will assume an executive management role with EZCORP and will lead its online lending business. EZCORP will also hire substantially all of the Go Cash employees, including a management team with significant experience in U.S. online lending; an internal analytics team that continually evaluates data to improve loan decisioning processes and overall customer experience; and dedicated and experienced customer service and collections call center representatives.
The assets to be acquired include a proven, industry-leading proprietary software platform, including a loan management system and decision engine, that will enable geographic expansion in the U.S. and internationally; an internal customer service and collections call center; a portion of the existing Go Cash loan portfolio; and related assets, including customer lists, customer data and customer transaction information.
The purchase price is performance-based and will be determined over a period of four years following the closing, with a minimum of
at the end of the first year and
at the end of each of the second and third years. The performance element will be based on the net income generated by the business. At the end of each of the first four years following the closing, EZCORP will make a contingent supplemental payment equal to six times net income (subject to certain adjustments), minus all consideration payments previously paid. EZCORP has the option of paying the full purchase price, or any payment, in cash or in the form of shares of EZCORP Class A Non-Voting Common Stock.
Completion of the acquisition is subject to the receipt of regulatory approvals and other customary closing conditions, and is expected to occur before the end of the calendar year.