Press release from Business Wire
Dollar Financial Corp Announces Agreement to Purchase a Leading Internet Lending Business in Scandinavia
Thursday, August 26, 2010
Dollar Financial Corp Announces Agreement to Purchase a Leading Internet Lending Business in Scandinavia07:30 EDT Thursday, August 26, 2010 BERWYN, Pa. (Business Wire) -- Dollar Financial Corp (NASDAQ:DLLR - News), a leading international diversified financial services company primarily serving unbanked and under-banked consumers for over 30 years, announced that it has entered into an agreement to acquire Folkia Group AS, a leading Scandinavian internet lending business with headquarters in Stockholm, Sweden. Folkia, which was founded in 2006, currently originates loans through both internet and SMS text cell phone technology in four countries: Sweden; Finland; Denmark; and Estonia. The completion of the acquisition is contingent upon customary closing conditions, including local regulatory approval, which is expected to take 45 to 90 days to obtain. Commenting on the announcement, Jeff Weiss, the Company's Chairman and Chief Executive Officer, stated, “This acquisition provides us with an internet and cell phone based lending platform that was designed to handle the specific requirements for expansion within Northern Europe and Scandinavia, while also providing the added benefit of a portable credit and finance license for future expansion into additional countries in the European Union. We are pleased to welcome the Folkia management team into the Dollar family and intend to leverage their expertise in Dollar's continuing development of a global internet lending business. We recently leveraged the internet lending platform we had acquired in the United Kingdom for expansion into Canada, since that technology platform was a good fit for the specific nuances of providing internet loans in the Canadian market. It is our intention to be the leading global provider of diversified financial services to unbanked and under-banked consumers. We intend to deliver these services through whatever means are most preferred and convenient for our customers, and we see internet and cell phone technology as emerging components of this multi-channel strategy.” The purchase price of the acquisition is expected to be approximately $28.0 million, with a potential for future earn-out payments depending on the growth of the acquired business over the next two years following the closing of the transaction. The Company anticipates the acquisition will be immediately accretive to earnings, and expects to update its earnings outlook for fiscal 2011 to include the Folkia business when the transaction is finalized. About Dollar Financial Corp Dollar Financial Corp is a leading international diversified financial services company primarily serving unbanked and under-banked consumers for over 30 years. Through its retail storefront locations as well as by other means, such as via the Internet, the Company provides a range of consumer financial products and services in five countries, Canada, the United Kingdom, the United States, the Republic of Ireland and Poland, to consumers who, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. The Company's products, principally its short-term consumer loans, check cashing services, secured pawn loans and gold buying services, provide customers with immediate access to cash for living expenses or other episodic needs. The Company also offers high-value ancillary services, including Western Union money order and money transfer products, electronic tax filing, reloadable VISA® and MasterCard® debit cards, foreign currency exchange, and other services. In addition, through its branded Military Installment Loan and Education Services, or MILES® program, the Company provides fee based services to enlisted military personnel applying for loans to purchase new and used vehicles that are funded and serviced under an exclusive agreement with a major third-party national bank. At June 30, 2010, the Company's global retail operations consisted of 1,180 locations, including 1,058 company-operated financial services stores and 122 franchised and agent locations, conducting business primarily under the names Money Mart®, Money Shop®, Loan Mart®, Money Corner®, Insta-Cheques® and The Check Cashing Store® in Canada, the United Kingdom, the United States and the Republic of Ireland, and Poland. For more information, please visit the Company's website at www.dfg.com. Forward Looking Statement This news release contains forward looking statements, including, among other things, statements regarding the following: recent acquisitions; the Company's future results, growth, guidance and operating strategy; the global economy; the effects of currency exchange rates on reported operating results; the developing regulatory environment in Canada, the U.K., the United States, and other countries; the impact of future development strategy, new stores and acquisitions; litigation matters; and the performance of new products and services. These forward looking statements involve risks and uncertainties, including risks related to: the regulatory environments; current and potential future litigation; the identification of acquisition targets; the integration and performance of acquired stores and businesses; the performance of new stores; the impact of debt financing transactions; the results of certain ongoing income tax appeals; and the effects of new products and services on the Company's business, results of operations, financial condition, prospects and guidance; and uncertainties related to the effects of changes in the value of the U.S. dollar compared to foreign currencies. There can be no assurance that the Company will attain its expected results, successfully integrate any of its acquisitions, or attain its published guidance metrics, or that ongoing and potential future litigation or the various FDIC, Federal, state, Canadian or foreign legislative or regulatory activities affecting the Company or the banks with which the Company does business will not negatively impact the Company's operations. A more complete description of these and other risks, uncertainties and assumptions is included in the Company's filings with the Securities and Exchange Commission, the Company's annual reports and Forms 10-Q and 10-K. You should not place any undue reliance on any forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.