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Pawn shop operator FirstCash to buy American First Finance in deal valued at nearly $1.2 billion

Pawn shop operator FirstCash Inc. (FCFS) announced Thursday an agreement to buy lease-to-own and retail finance provider American First Finance Inc. in a stock and cash deal valued $1.17 billion. FirstCash's stock was still inactive in the premarket. The deal's terms include 8.05 million FirstCash share, which based on Wednesday's closing price of $93.35 would be valued at $751.5 million, and $406 million in cash. The stock portion represents 19.9% of the shares outstanding as of Oct. 19. In addition, FirstCash may pay up to $300 million if American First Finance reaches certain financial targets through the first half of 2023. "With the tremendous growth in the retail POS finance and buy now pay later space, AFF is an ideal partner for FirstCash, bringing a highly profitable and scaled platform with industry leading LTO and retail finance capabilities, a large and highly reputable merchant base and an experienced management team," said FirstCash Chief Executive Rick Wessel. FirstCash's stock has soared 19.2% over the past three months while the S&P 500 has gained 3.4%.

-Tomi Kilgore

 

(END) Dow Jones Newswires

10-28-21 1144ET

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