CURO Group (NYSE: CURO) sells its former direct lending business in the United States for $345 million and acquires First Heritage Credit for $140 million.
CURO said it is selling its Legacy US Direct Lending business to Dublin, Ohio-based Community Choice Financial for $345 million in cash, of which $35 million will be be paid over 12 months under a transition services agreement.
“At the end of 2021, we acquired Heights Finance, a leading, prime installment lender, signifying our entry into this broader US consumer lending market,” said CURO CEO, Don Gayhardt.
“Continuing this strategic shift, today we are announcing that we are selling our former US storefronts and online businesses, which operate under the Speedy Cash, Rapid Cash and Avio Credit brands,” added Gayhardt.
Additionally, CURO is acquiring Ridgeland, Mississippi-based First Heritage Credit, a consumer lender that provides prime installment loans and customary optional insurance, for $140 million in cash.
“Together, these transactions completely transform our U.S. direct lending business into a premier installment lender offering larger loans,” Gayhardt added.
The respective transactions have been approved by the boards of directors of the three companies.
Both agreements are expected to close within the next 45 days, subject to conditions, including regulatory approvals.
CURO +1.36% at $8.20 pre-market on May 19