goeasy acquires point-of-sale financing company LendCare for $320 mn

By Pavithra R

goeasy a Canadian full-service provider of goods and alternative financial services has announced entering  into a definitive agreement to acquire LendCare Holdings, a Canadian point-of-sale consumer finance and technology company, from LendCare’s founders and CIVC Partners for $320 mn.

Founded in 2004, LendCare is one of Canada’s leading point-of-sale financing providers, with approx. 3,000 merchant, OEM and distributor relationships nationwide. Its proprietary origination software enables the company to specialize in financing consumer purchases in the powersports, automotive, retail, healthcare, and home improvement verticals.

Through the acquisition, goeasy is planning to accelerate its growth in the consumer credit market through the expansion of its product range and point-of-sale distribution platform. The acquisition is aligned with goeasy’s financial objectives and is anticipated to be immediately accretive to the company’s adjusted earnings per share, with accretion expected to increase to approx. 10% in 2022 and approx. 15% in 2023. The deal is expected to close in the second quarter of 2021, subject to customary closing conditions and regulatory approvals.

“We are pleased to be executing an acquisition with such strong strategic fit. Each year in Canada there is estimated to be more than $40 billion of credit extended to consumers through financing and “buy-now, pay-later” programs offered at the point-of-sale. Through this acquisition, we will strengthen our position as a leading provider of non-prime consumer credit, while also expanding our range of near-prime products and adding new industry verticals to our point-of-sale lending channel. The transaction is expected to accelerate our existing growth strategy, while providing immediate accretion to our adjusted earnings per share and contributing to our 20 year track record of compounding earnings growth at over 30%,” said Jason Mullins, goeasy’s President & Chief Executive Officer.

As part of the acquisition, LendCare’s founders, Ali Metel and Mark Schell, will assume management positions with goeasy, while maintaining responsibility for the ongoing operations of LendCare.

“After building a leading point-of-sale financing platform over the last 15 years, we are excited for the next chapter of our growth with goeasy. Together, we offer a wide diversification of products and distribution channels across the consumer lending market that can help deliver a premium experience for our customers. We look forward to leveraging the combined expertise and technology of each firm, and the benefits of the scale and investment goeasy will bring to the LendCare platform,” said Ali Metel, LendCare President & CEO.