TORONTO, April 12, 2021 /CNW/ – LendCare, a leading Canadian point-of-sale finance and technology company, today announced they have entered into a definitive agreement to be acquired by goeasy Ltd. (TSX: GSY). Under the terms of the agreement, goeasy will pay $320 million in a combination of cash and $10 million in common shares elected to be received by LendCare’s founders as part of their consideration. The Acquisition is expected to close in the second quarter of 2021, subject to customary closing conditions and regulatory approvals.
goeasy is one of Canada’s leading providers of non-prime leasing and lending services offering a wide variety of financial products that help put Canadians on a path to a better financial future. Their commitment to helping the 9.4 million non-prime Canadians that are often denied for credit by banks and other traditional financial institutions, is grounded in a vision of helping put everyday Canadians on a path to a better tomorrow, today. With a wide variety of financial products and services including unsecured and secured installment loans, consumer leases and financing at the point-of sale, goeasy aspires to help Canadians rebuild their credit and graduate to prime lending.
The Acquisition of LendCare is expected to accelerate goeasy’s growth in the consumer credit market through the expansion of its product range and point-of-sale distribution platform.
«We have achieved incredible growth over the past 15 years and this acquisition will serve to accelerate LendCare’s current growth strategy as goeasy looks to make meaningful investments in the business. Together, we will help bring our customers and merchants an even better suite of products and financing experience,» said Ali Metel, LendCare’s President & CEO, «Our success has been extraordinary and I’m proud of what we have achieved and look forward to a promising future.»
LendCare has been on the fast track to accelerated growth, with over $6B in loan applications processed and serving close to 3,000 businesses.
«We are excited to welcome Ali, Mark and the entire LendCare team to goeasy. They have built a remarkable business and we look forward to providing them the support and investments that will help achieve their ambitious growth plans,» said Jason Mullins, goeasy’s President & CEO. «LendCare is a complementary fit for goeasy, helping advance and propel our existing growth strategy, by expanding our range of financial products and growing our point-of-sale lending channel.»
About LendCare Holdings Inc.
LendCare is a Canadian consumer finance and technology company, which enables over 3,000 businesses to increase their revenue by providing full credit spectrum financing at the point-of-sale. For over 15 years, LendCare has cleared a path to providing fast, reliable and affordable financing options for the Powersports, Auto, Retail, Home Improvement and Health sectors, while processing over $6 billion in loan applications to date. With a dedicated team of finance experts and well-established partnerships with merchants, top dealerships and brokers, LendCare bridges the gap between credit score and customers living their best life. Visit: www.lendcare.ca.
goeasy Ltd., a Canadian company, headquartered in Mississauga, Ontario, provides non-prime leasing and lending services through its easyhome and easyfinancial divisions. With a wide variety of financial products and services including unsecured and secured instalment loans, goeasy aspires to help put Canadians on a path to a better financial future, as they rebuild their credit and graduate to prime lending. Customers can transact seamlessly with easyhome and easyfinancial through an omni-channel model that includes online and mobile, as well as over 400 leasing and lending locations across Canada supported by more than 2,000 employees. Throughout the company’s history, it has served over 1 million Canadians and originated $5.0 billion in loans, with one in three customers graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.
Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards including Waterstone Canada’s Most Admired Corporate Cultures, Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces in North America, Greater Toronto Top Employers Award, the Digital Finance Institute’s Canada’s Top 50 FinTech Companies, ranking on the TSX30 and placing on the Report on Business ranking of Canada’s Top Growing Companies. The company and its employees believe strongly in giving back to the communities in which it operates and has raised over $3.5 million to support its long-standing partnerships with BGC Canada, Habitat for Humanity and many other local charities.
goeasy’s common shares are listed on the TSX under the trading symbol «GSY». goeasy is rated BB- from S&P and Ba3 from Moody’s. Visit www.goeasy.com.
SOURCE LendCare Holdings Inc.