CURO Announces Closing of Katapult and FinServ Acquisition Corp. Business Combination and Details Merger Consideration
CURO Group Holdings Corp. (NYSE: CURO) has completed a business combination with Katapult Holding, Inc. and FinServ Acquisition Corp., resulting in CURO receiving $146.9 million in cash and retaining a 22.2% stake in Katapult. The total valuation of CURO's cash and stock consideration stands at $464.7 million. CEO Don Gayhardt will remain on Katapult's board, indicating CURO's commitment to the growing e-commerce financing sector. Don Gayhardt highlighted a successful return on CURO's $27.5 million investment in Katapult.
- CURO receives $146.9 million in cash from the business combination.
- Retains a 22.2% ownership stake in Katapult, valued at $464.7 million.
- Successful return on a $27.5 million investment in Katapult.
- CEO and lead independent director maintain board representation in Katapult.
- Risks associated with achieving expected benefits from the Katapult investment.
- Potential competitive pressures on Katapult's future business.
- Economic uncertainties, including the impact of COVID-19.
- Dependence on a limited number of merchants for business stability.
CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a tech-enabled, multi-channel and multi-product consumer finance company serving a wide range of non-prime and prime consumers in the U.S. and Canada and an industry market leader by revenue, today announced several benefits from the announced completion of the business combination between Katapult Holding, Inc. (“Katapult”), an e-commerce focused financial technology company, and FinServ Acquisition Corp. (Nasdaq: FSRV) (“FinServ”), a publicly traded special purpose acquisition company.
Based on the terms of the business combination and CURO’s ownership in Katapult, CURO will receive cash of
“We are proud of Katapult’s accomplishments and are extremely happy with the return on our
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include statements regarding projections, estimates and assumptions about the benefits we expect to receive from our investment in Katapult. In addition, words such as “guidance,” “estimate,” “anticipate,” “believe,” “forecast,” “step,” “plan,” “predict,” “focused,” “project,” “is likely,” “expect,” “intend,” “should,” “will,” “confident,” variations of such words and similar expressions are intended to identify forward-looking statements. The ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including: failure to realize the anticipated benefits of our investment in Katapult; risks relating to the uncertainty of projected financial information with respect to Katapult; the effects of competition on Katapult’s future business; Katapult’s ability to attract and retain customers; the impact of COVID-19 pandemic on Katapult and the global economy; risks related to the concentration of Katapult’s business among a relatively small number of merchants; errors in our internal forecasts; actions of regulators and the negative impact of those actions on the point-of-sale finance market; as well as other factors discussed in our filings with the Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There may be additional risks that we presently do not know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. We undertake no obligation to update, amend or clarify any forward-looking statement for any reason.
About CURO
CURO Group Holdings Corp. (NYSE: CURO), serves the evolving needs of the financial consumer. In 1997, the Company was founded in Riverside, California by three Wichita, Kansas childhood friends to meet the growing consumer need for short-term loans. Their success led to opening stores across the United States, later expanding to offer online loans and financial services in the United States and Canada and now broadening into a full-spectrum consumer lender through the point-of-sale / buy-now-pay-later channel. CURO combines its market expertise with a fully integrated technology platforms, an omni-channel approach and advanced credit decisioning to provide an array of credit products across all mediums. CURO operates under a number of brands including Speedy Cash®, Rapid Cash®, Cash Money®, LendDirect®, Flexiti®, Avío Credit®, Opt+® and Revolve Finance®. With over 20 years of operating experience, CURO provides financial freedom to non-prime consumers.
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FAQ
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