CURO to acquire Flexiti Financial for up to CDN $155M

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By CPE News

CPE News (2/1/2021) – CURO Group Holdings Corp. (NYSE: CURO) has agreed to acquire FLX Holding Corp. and its operating subsidiary, Flexiti Financial Inc. for CDN $108.6 million, plus earn-out amounts of up to CDN C$46.5 million.

The transaction is expected to close in the first quarter of 2021, subject to certain closing conditions.

Founded by Peter Kalen, 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, jewelry and electronics.

In June 2018, Globalive Capital Inc., a company controlled by Anthony Lacavera, led a $50 million equity financing, in supporting a $250 million acquisition of TD Financing Services’ Canadian Private Label Credit Card Portfolio by Flexiti Financial. As a result of the financing, Globalive Capital, through 2629331 Ontario Inc.. increased its equity position to 41% of economic ownership and 51% of voting control in FLX.

Flexiti’s investors also include Canadian private investors and international investors from Belize, China, Thailand and Paraguay.

photo credit: Flexiti

News Release

Flexiti to be acquired by CURO, forging a strategic partnership, strengthening Flexiti as a leading Canadian buy-now-pay-later solution provider

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, Feb. 1, 2021 /CNW/ – Flexiti Financial Inc. (“Flexiti”), 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. (“CURO”) (NYSE: CURO), 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 0% 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.


1 O.A.C. Terms and conditions apply.

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.

Flexiti’s technology platform is recognized as market leading, winning ACT (Advanced Card Technologies) Canada’s 2015 Technology Innovation Award for Payments Benefiting Merchants. In 2017, Flexiti was recognized in North America as the Leading Emerging Fintech by LendIt. In 2019, Flexiti was named Canada’s 11th fastest growing company by the Globe and Mail, ranked 7th in the Deloitte Technology Fast 50TM program, and 40th in Deloitte North America Technology Fast 500TM. In 2020, Flexiti ranked 29th in The Americas’ 500 Fastest Growing Companies by the Financial Times, 6th in The Globe and Mail’s Canada’s Top Growing Companies, 3rd on the 2020 Growth List and 6th and 39th on Deloitte Technology Fast 50TM and Fast 500TM, respectively.

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About CURO
CURO Group Holdings Corp. (NYSE: CURO), operating in two countries and powered by its fully integrated technology platform, is a provider of credit to non-prime consumers. 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 and expanding to offer online loans and financial services across two countries. Today, CURO combines its market expertise with a fully integrated technology platform, 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®, 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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SOURCE Flexiti Financial Inc.

For further information: Media Contact: Jason Kinnear,