Combination with CURO secures the capital required by Flexiti to target rapid growth in loan originations within the Canadian marketplace; Flexiti signs agreement to increase credit facilities from $380 million to $500 million

TORONTO, ON–Flexiti Financial Inc., Canada’s leading provider of point-of-sale (POS) consumer financing solutions for retailers, announced today it has entered into an agreement to be acquired by CURO Group Holdings Corp., a market leader in providing credit to non-prime consumers, for total consideration of C$155 million, based on the achievement of certain performance targets. The transaction is expected to close in the first quarter of 2021, subject to certain closing conditions.

The transaction brings together two companies with complementary strengths and a range of credit options to help make customers’ lives more affordable and improve their shopping experience.

Founded in 2013, Flexiti has become one of Canada’s fastest-growing buy-now-pay-later (BNPL) financing providers, offering an instant, omni-channel proprietary platform requiring no POS integration with its merchant partners. In 2020, Flexiti was recognized by the Globe and Mail (Canada’s Fastest Growing Companies– ranked 6th), Canadian Business (Growth List – ranked 3rd), Deloitte (Technology Fast 50 TM – ranked 6th) and The Financial Times (The Americas’ Fastest Growing Companies – ranked 29th, 2nd in Canada).

CURO is a North American market leader in providing credit to non-prime consumers through a network of stores in the U.S. and Canada and online direct-to-consumer brands. Through this acquisition, Flexiti will leverage CURO’s financial strength, lending expertise and leadership across the credit spectrum to strengthen its position as a leading Canadian BNPL solution provider. Flexiti will continue to operate as a standalone business in Canada following the close of the transaction.

Flexiti’s omni-channel BNPL solution is available in nearly 6,000 retail locations and websites. Through the FlexitiCard®, Flexiti’s revolving credit line, cardholders can select from flexible payment plans, including zero percent interest1 financing options. With the broad-spectrum credit expertise provided by CURO, Flexiti will be able to deepen its credit offering to Canadian customers and provide financing to even more of its merchant partners’ customers.

In addition, Flexiti announced the signing of an agreement to increase its credit facilities from $380 million to $500 million. Flexiti’s augmented financing capabilities and the financial strength of CURO will allow Flexiti to target rapid growth in loan originations in 2021.

“After founding Flexiti, I knew this business was destined for exceptional success,” said Peter Kalen, Founder and CEO of Flexiti. “Flexiti continues to grow at a rapid rate and this transaction will enable us to accelerate our growth trajectory. I am tremendously proud of the success that Flexiti has achieved in its seven years of operations and I have no doubt we are better positioned than ever to provide great BNPL offerings to our retail partners and cardholders.”

“Flexiti is one of Canada’s fastest growing BNPL providers with a market-leading omni-channel FinTech platform. This acquisition serves as an important milestone for CURO’s continued value creation in Canada allowing the company to serve customers across all channels and with an expanded product set,” said Don Gayhardt, President and Chief Executive Officer of CURO. “CURO has been focused on M&A opportunities that align with our key strategic growth areas in Canada and card products and this acquisition accelerates our progress on both fronts. Beyond the compelling strategic rationale and enhancements to our long-term growth strategy, Flexiti is a strong cultural fit for CURO. Credit risk management is a core competency for both companies that seek to optimize the balance between growth and prudent credit risk management to maximize long-term profitability. Both companies structure their businesses around the value of the omni-channel model, and continually enhance their product suites to best meet the evolving needs of their customers. Flexiti’s management team and technology are first-rate and the company is well positioned to execute on a strategic plan that calls for continued rapid loan origination growth. I’m excited to welcome Flexiti to the CURO team and look forward to creating value for all of our stakeholders.”

Houlihan Lokey served as financial advisor and Norton Rose Fulbright Canada served as legal counsel to Flexiti in this transaction. Osler, Hoskin and Harcourt served as legal counsel to CURO in this transaction.

About Flexiti
Flexiti is one of Canada’s fastest-growing point-of-sale lenders, offering customers 0% interest financing at retailers that sell big-ticket goods like furniture, appliances, jewellery and electronics. Through its award-winning buy-now-pay-later platform, customers can be approved instantly to shop with their FlexitiCard®, which they can use online or in-store to make multiple purchases, within their credit limit, without needing to reapply. Accepted at nearly 6,000 locations and ecommerce sites across Canada including The Brick, Leon’s, Staples, Sleep Country, Wayfair, Birks and Peoples Jewellers, Flexiti aims to make our customers’ lives more affordable and help our retail partners grow their sales by offering flexible financing options.

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