goeasy Ltd. (TSX: GSY), (“
goeasy” or the
“
Company”), a leading full-service provider of
goods and alternative financial services, announced today the sale
of its minority equity interest in PayBright Inc.
(“
PayBright”). As announced today by PayBright and
Affirm Holdings Inc. (“
Affirm”), the shareholders
of PayBright have reached a definitive agreement (the
“
Definitive Agreement”) to sell 100% of the
PayBright shares to Affirm. Additional details can be found within
PayBright and Affirm’s joint press release at:
https://www.businesswire.com/news/home/20201203005862/en/Affirm-to-Acquire-PayBright-One-of-Canada’s-Leading-Buy-Now-Pay-Later-Providers-for-CAD-340-Million
In September 2019, goeasy invested $34.3 million
to acquire a minority equity interest in PayBright. Under the terms
of the sale transaction, goeasy will receive a mixture of cash and
equity consideration in connection with closing, valued at up to
$60.1 million, as determined in the manner set out in the
Definitive Agreement. As of September 30, 2020, the Company’s
equity interest in PayBright was held on its balance sheet at a
value of $40 million, including $5.7 million of unrealized fair
value gains recorded to date. As a result of the transaction,
goeasy expects to record a further gain on the sale of its shares
in PayBright, the amount of which will be determined once goeasy
completes an accounting, tax and valuation review in connection
with the upcoming financial reporting period. The sale of PayBright
to Affirm, which is subject to certain closing conditions, is
expected to close in early 2021.
“This transaction will deliver an attractive
return on our equity investment and significant value for goeasy
shareholders,” said Jason Mullins, goeasy’s President and Chief
Executive Officer, “We look forward to continuing our commercial
partnership with Affirm, who is regarded as one of North America’s
most innovative and consumer focused buy-now-pay-later platforms.
Together, we will continue to offer a frictionless full credit
spectrum point-of-sale payments solution.”
About goeasy
goeasy Ltd., a Canadian company, headquartered
in Mississauga, Ontario, provides non-prime leasing and
lending services through its easyhome and easyfinancial divisions.
With a wide variety of financial products and services including
unsecured and secured instalment loans, goeasy aspires to help put
Canadians on a path to a better financial future, as they rebuild
their credit and graduate to prime lending. Customers can transact
seamlessly with easyhome and easyfinancial through an omni-channel
model that includes online and mobile, as well as over 400 leasing
and lending locations across Canada supported by more
than 2,000 employees. Throughout the company’s history, it has
served over 1 million Canadians and originated $4.7 billion in
loans, with one in three customers graduating to prime credit and
60% increasing their credit score within 12 months of
borrowing.
goeasy is the proud recipient of several awards
including Waterstone Canada’s Most Admired Corporate Cultures,
Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces
in North America, Greater Toronto Top Employers Award, the
Digital Finance Institute’s Canada’s Top 50 FinTech Companies,
ranking on the TSX30 and placing on the Report on Business ranking
of Canada’s Top Growing Companies. The company and its employees
believe strongly in giving back to the communities in which it
operates and has raised over $3 million to support its
long-standing partnerships with the Boys & Girls Clubs of
Canada and Habitat for Humanity.
goeasy Ltd.’s. common shares are listed on the
TSX under the trading symbol “GSY”. goeasy is rated BB- with
a stable trend from S&P and Ba3 with a stable trend from
Moody’s. Visit www.goeasy.com.
About PayBright
PayBright is one of Canada's leading providers
of installment payment plans for e-commerce and in-store purchases.
Through partnerships with over 7,000 domestic and international
retailers, PayBright allows Canadian consumers to buy now and pay
later in a quick and easy experience. PayBright is fully integrated
with leading retail partners including Hudson’s Bay, Oakley, SAIL,
Steve Madden, eBay, Dynamite, SHEIN, Wayfair, Samsung, and Endy.
PayBright's installment plans range from four bi-weekly
interest-free payments for smaller purchases, and up to 60 months
for larger purchases. In 2017, PayBright powered Canada’s
first-ever e-commerce installment payment transaction, and since
then has grown its platform significantly. Unlike other installment
payment options, PayBright does not require consumers to sign up
for a credit card and does not charge hidden fees, retroactive
interest, or revolving interest. PayBright was named Canada’s
Fintech Company of the Year in 2019 by the Digital Finance
Institute and was recently named to Deloitte’s Technology Fast 50
for 2020, recognizing Canada’s fastest-growing technology companies
over the preceding four years. For more information, visit
www.paybright.com.
Forward-Looking Statements
This press release includes forward-looking
statements about the Company, including, but not limited to,
expectations regarding the completion of the sale of the Company’s
interest in PayBright, the anticipated consideration to be received
by the Company pursuant to the Definitive Agreement, and the
anticipated benefits to be realized by the Company in connection
with such transaction. In certain cases, forward-looking statements
are statements that are predictive in nature, depend upon or refer
to future events or conditions, and/or can be identified by the use
of words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’,
‘believes’, ‘budgeted’, ‘estimates’, ‘forecasts’, ‘targets’ or
negative versions thereof and similar expressions, and/or state
that certain actions, events or results ‘may’, ‘could’, ‘would’,
‘might’ or ‘will’ be taken, occur or be achieved. Forward-looking
statements are based on certain factors and assumptions, including
the expected value of the equity consideration to be received by
the Company pursuant to the Definitive Agreement, the expected
growth, market conditions, results of operations and business
prospects of each of PayBright and goeasy and are inherently
subject to, among other things, risks, uncertainties and
assumptions about each of PayBright’s and goeasy’s operations,
economic factors and the industry generally, as well as those
factors referred to in the Company’s most recent annual information
form and interim and annual management discussion and analysis, as
available on www.sedar.com, in each case in the section entitled
“Risk Factors”. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those expressed or implied by
forward-looking statements made by the Company. The reader is
cautioned to consider these and other factors carefully and not
place undue reliance on forward looking statements. The Company is
under no obligation (and expressly disclaims any such obligation)
to update or alter the forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by law.
For further information contact:
Jason MullinsPresident & Chief Executive
Officer(905) 272-2788
Farhan Ali KhanSenior Vice President, Corporate
Development and Investor Relations(905) 272-2788
Goeasy (TSX:GSY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Goeasy (TSX:GSY)
Historical Stock Chart
From Apr 2023 to Apr 2024