By midmorning, shares had climbed 5.5% to $9.47. Trading volume of 9.8 million was nearly sixteen times its three-month daily average.
The consumer lender said stockholders would receive $9.50 a share in a cash transaction totaling around $1.3 billion. The per-share price is a 12.3% premium to the company's 30-day volume-weighted average stock price.
"We are pleased to have reached this agreement, which delivers immediate cash value to our stockholders," said Jeff Weiss, DFC Global's Chairman and Chief Executive Officer. "We look forward to taking advantage of enhanced financial flexibility to find new ways to build our business while continuing to meet and exceed the needs of our global customer base."
DFC Global will become a privately-held company once the acquisition closes. The transaction is expected to be finalized in the third calendar quarter of 2014.
Houlihan Lokey Capital is acting as financial advisor and Pepper Hamilton as legal advisor to DFC Global. Jefferies is lead financial advisor to Lone Star Funds, while Credit Suisse is acting financial advisor.
Jefferies and Credit Suisse are providing debt-financing commitments for the acquisition.