FirstCash to Purchase American First Finance, a Main Expertise-Pushed Digital Lease-to-Personal and Retail Finance Platform for Underserved Prospects

Establishes FirstCash’s Entry into Giant and Rising Level-of-Sale Funds Market

Gives Vital Income and Earnings Development Alternative

$1.17 Billion Inventory and Money Transaction Anticipated to be Considerably Accretive to EBITDA and EPS

Firms to Host Convention Name At this time at 8:30 a.m. ET / 7:30 a.m. CT

FORT WORTH, Texas, Oct. 28, 2021 (GLOBE NEWSWIRE) — FirstCash, Inc. (the “Firm”) (Nasdaq: FCFS), the main worldwide operator of over 2,800 retail pawn shops within the U.S. and Latin America, right now introduced that it has entered right into a definitive settlement to accumulate American First Finance, Inc. (“American First Finance” or “AFF”), a quickly rising, technology-driven digital lease-to-own (“LTO”) and retail finance supplier targeted on underserved, non-prime clients. Underneath the phrases of the settlement, the overall consideration payable at closing is valued at roughly $1.17 billion, based mostly on FirstCash’s closing inventory worth on October 26, 2021, consisting of roughly 8.05 million shares of frequent inventory and $406 million in money, topic to a web debt adjustment. As much as a further $300 million of consideration is payable within the occasion AFF achieves sure efficiency targets via the primary half of 2023.

The addition of American First Finance launches FirstCash into the massive and rising point-of-sale (“POS”) and purchase now pay later cost house, which is estimated to have a $600 billion whole addressable market1. AFF is the fourth largest supplier of POS cost options to underserved retail clients within the U.S. with vital scale. AFF serves clients via its differentiated omnichannel technique, using refined underwriting fashions and its e-commerce capabilities.

Rick Wessel, FirstCash Chief Government Officer and Vice-Chairman of the Board said, “Since our founding greater than 30 years in the past and thru the merger of First Money and Money America in 2016, we now have efficiently executed on our progress technique and established FirstCash as a number one retailer and supplier of economic companies to underserved shoppers, whereas delivering vital worth to shareholders. Constructing on the complementary strengths of FirstCash and American First Finance, this transaction diversifies us past our core pawn enterprise with the addition of a fast-growing phase that considerably expands our buyer base and introduces a scalable, technology-driven product set into our group.”

Mr. Wessel continued, “With the great progress within the retail POS finance and purchase now pay later house, AFF is a perfect companion for FirstCash, bringing a extremely worthwhile and scaled platform with business main LTO and retail finance capabilities, a big and extremely respected service provider base and an skilled administration staff. Working with American First Finance, we consider we’re effectively positioned to drive additional enlargement on this massive and rising addressable market. As well as, we consider there are alternatives to make the most of American First Finance’s platform to convey versatile cost choices to our pawn shops to drive even quicker stock turns and complement our present retail layaway product. We’re excited to welcome AFF’s gifted staff and look ahead to the alternatives forward to serve extra clients than ever.”

Doug Rippel, Chairman and Founding father of American First Finance said, “After I based AFF in 2013, I got down to present hundreds of thousands of shoppers with out pristine credit score with versatile cost options to accumulate sturdy items and companies, and I’m extremely pleased with what we’ve constructed. FirstCash shares our imaginative and prescient of offering retail financing alternate options to underserved clients, and with its robust operational monitor document, we’re assured that AFF shall be even higher positioned to develop its buyer and service provider base and proceed supporting their wants. I look ahead to being a major shareholder and becoming a member of the FirstCash Board of Administrators to assist information our mixed firm going ahead.”

Compelling Strategic and Monetary Advantages

  • Facilitates FirstCash’s Entrance into Giant and Rising POS Funds Market. At this time, retail POS financing is among the quickest rising parts of the monetary companies sector. FirstCash has a confirmed monitor document in retail-based operations targeted on underserved shoppers, and thru this transaction with AFF, will turn into a pacesetter within the extremely complementary POS funds house targeted on related clients. At this time, AFF helps a nationwide community of greater than 6,500 lively service provider companion shops and e-commerce platforms, producing progress alternatives and incremental gross sales to shoppers who wouldn’t have certified for financing presents usually supplied by these retailers. It has established vital presence with service provider companions targeted on furnishings and mattresses, home equipment, jewellery, electronics and automotive merchandise and restore companies, amongst others. AFF has seen speedy progress in its bill quantity with service provider companions, rising from lower than $350 million in 2019 to an estimated $800 million in 2021.

  • Expanded Product Choices Enhancing FirstCash’s Core Pawn Enterprise. With AFF, FirstCash can present versatile cost choices to retail clients in its pawn places which is able to present a brand new income. Particularly, AFF’s LTO platform will improve choices for patrons past FirstCash’s present layaway program by permitting them to take residence leased merchandise instantly. Over the long term, FirstCash expects to discover alternatives for potential LTO and retail finance merchandise in Latin America. Moreover, for all AFF LTO clients who want to return leased merchandise, FirstCash can settle for these things at considered one of its 1,087 U.S. pawn places throughout 25 states and the District of Columbia.

  • Leverages Built-in Expertise, Knowledge, e-Commerce and Cellular Capabilities to Speed up Omnichannel Technique. AFF’s totally built-in expertise platform is well integrated into its service provider companions’ programs in-cart checkout platforms and extra broadly on-line in addition to for cellular gadgets. With the addition of AFF’s enhanced expertise, information and e-commerce capabilities, FirstCash shall be effectively positioned to capitalize on progress alternatives in each present and new product and repair classes. As well as, AFF may also help FirstCash’s efforts to combine digital cost choices for pawn clients to offer larger comfort and operational efficiencies.

  • Gives Vital Income and Earnings Development Alternative. AFF generated revenues of roughly $350 million in 2020 with estimated revenues of over $600 million and over $800 million in 2021 and 2022, respectively. AFF initiatives adjusted EBITDA for 2022 between $120 million and $140 million.

  • Creates Alternative for Rapid Adjusted EPS and Adjusted EBITDA Accretion. The transaction is predicted to be roughly 15% accretive to adjusted earnings per share in 2022, with additional accretion anticipated in 20232. Adjusted EBITDA accretion is projected to be roughly 30% in 2022.

  • Generates Robust Money Stream to Help Balanced Capital Allocation Plans, Together with Shareholder Returns. FirstCash expects to proceed producing vital free money flows and can stay targeted on long-term shareholder returns via additional funding in its core home and worldwide pawn enterprise, whereas additionally accelerating AFF’s progress. FirstCash expects to keep up its present dividend coverage and to opportunistically repurchase shares below its present authorization. FirstCash stays dedicated to sustaining a strong steadiness sheet and its robust and steady credit score rankings.

Phrases of Acquisition and New Mum or dad Firm Formation

Underneath the phrases of the settlement, FirstCash will purchase 100% of the excellent fairness pursuits of American First Finance, for a consideration at closing consisting of roughly 8.05 million shares of frequent inventory and $406 million in money, topic to adjustment for AFF’s web debt at closing and sure different gadgets. Along with the closing buy worth, as famous above, the vendor has the potential to obtain as much as a further $300 million pursuant to an earnout if AFF meets sure adjusted EBITDA targets via the primary half of 2023.

As a part of the transaction, FirstCash will kind a brand new guardian firm, which is able to assume FirstCash’s itemizing on the Nasdaq and preserve the “FCFS” ticker image. At closing, the prevailing shares of FirstCash inventory will robotically convert on a one-for-one foundation into shares of frequent inventory of the brand new FirstCash guardian firm. Upon completion of the transaction, Mr. Rippel and his associates will management roughly 16.6% of the excellent shares of the brand new FirstCash guardian firm and present FirstCash shareholders will management the remaining 83.4%. At closing, Mr. Rippel may also be appointed to the Board of Administrators of the brand new FirstCash guardian firm.

Following the shut of the transaction, AFF will function as a separate Dallas-based enterprise unit inside FirstCash led by Howard Hambleton, AFF’s President and Chief Government Officer, and the remainder of its present administration staff.

The transaction has been unanimously permitted by FirstCash’s Board of Administrators and is predicted to shut in late 2021 or early first quarter of 2022, topic to the satisfaction of customary closing circumstances and receipt of regulatory approvals, together with antitrust approvals.

The money portion of the transaction shall be funded via a mix of money readily available and debt financing.

Convention Name

FirstCash and AFF will host a convention name right now at 8:30 a.m. Japanese Time (7:30 a.m. Central Time) to debate the transaction. The stay webcast could be accessed at The webcast will also be accessed by dialing 877-876-9176, (U.S. / Canada) or 785-424-1670 (Worldwide) and giving the Convention ID: 5723421. A replay of the decision shall be accessible by dialing 877-876-9176, (U.S. / Canada) or 785-424-1670 (Worldwide) and giving the Convention ID: 5723421.

Presentation and Infographic

Related presentation supplies and an infographic relating to the transaction shall be accessible on the investor relations part of FirstCash’s web site at


Jefferies LLC is performing as lead monetary advisor to FirstCash, with Comstock Capital & Advisory Group performing as extra monetary advisor and Alston & Chook performing as authorized advisor. Stephens Inc. is performing as monetary advisor to AFF and King & Spalding LLP is performing as authorized advisor.

About FirstCash

FirstCash is the main worldwide operator of pawn shops with over 2,800 retail pawn places and 16,000 staff in 25 U.S. states, the District of Columbia and 4 nations in Latin America together with Mexico, Guatemala, Colombia and El Salvador. FirstCash focuses on serving money and credit score constrained shoppers via its retail pawn places, which purchase and promote all kinds of knickknack, electronics, instruments, home equipment, sporting items, musical devices and different merchandise, and make small client pawn loans secured by pledged private property.

FirstCash is a part firm in each the Customary & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s frequent inventory (ticker image “FCFS”) is traded on the Nasdaq, the creator of the world’s first digital inventory market. For added data relating to FirstCash and the companies it supplies, go to FirstCash’s web site positioned at

About American First Finance

American First Finance (“AFF”) is a number one technology-driven point-of-sale funds platform targeted on serving credit score constrained shoppers. Based in 2013, AFF established itself as an modern retail finance supplier with differentiated merchandise that supply shoppers cost flexibility throughout marketplaces. At this time, AFF’s cost options can be found throughout 26 verticals with suppliers of each client items and companies utilizing both AFF’s lease-to-own resolution, a merchant-based retail installment gross sales settlement, or a bank-issued mortgage. As one of many 4 largest true omni-channel suppliers of “no credit score required” cost choices, AFF helps a nationwide community of greater than 6,500 lively service provider companions with seamless experiences in-store, on-line, in-cart and on cellular gadgets. The corporate has established vital presence producing greater than $1.9 billion in originations and gross sales for its service provider companions since inception. The corporate serves native, regional, and nationwide retailers in furnishings, home equipment, electronics, automotive restore, tire & wheel, wi-fi, jewellery, beauty, and dental, amongst different verticals.

For added data relating to AFF and the companies it supplies, go to AFF’s web site positioned at

Cautionary Assertion Concerning Ahead-Trying Statements

This launch incorporates “forward-looking statements” (as outlined within the Non-public Securities Litigation Reform Act of 1995) relating to, amongst different issues, the acquisition by FirstCash of AFF and future occasions or the longer term monetary efficiency of FirstCash and AFF. Phrases comparable to “anticipate,” “anticipate,” “undertaking,” “intend,” “consider,” “will,” “estimates,” “might,” “may,” “ought to” and phrases and phrases of comparable substance utilized in reference to any dialogue of future plans, actions or occasions determine forward-looking statements. The closing of the acquisition is topic to regulatory approvals and different customary closing circumstances. There isn’t a assurance that such circumstances shall be met or that the acquisition shall be consummated throughout the anticipated timeframe, or in any respect.

Ahead-looking statements regarding the acquisition embody, however will not be restricted to: statements about the advantages of the acquisition, together with anticipated progress of AFF’s enterprise, sure synergies and future monetary and working outcomes; potential financing for the acquisition; FirstCash’s plans, targets, expectations, projections and intentions; the anticipated timing of completion of the acquisition; and different statements regarding the transaction that aren’t historic details. Ahead-looking statements are based mostly on data at the moment accessible to FirstCash and contain estimates, expectations and projections. Traders are cautioned that each one such forward-looking statements are topic to dangers and uncertainties, and vital components may trigger precise occasions or outcomes to vary materially from these indicated by such forward-looking statements. With respect to the proposed acquisition, these dangers, uncertainties and components embody, however will not be restricted to: the chance that FirstCash or AFF could also be unable to acquire governmental and regulatory approvals required for the transaction, or that required governmental and regulatory approvals might delay the transaction or outcome within the imposition of circumstances that might cut back the anticipated advantages from the acquisition or trigger the events to desert the acquisition; the chance that FirstCash might not be capable of finance the acquisition on favorable phrases, if in any respect; the size of time essential to consummate the acquisition, which can be longer than anticipated for varied causes; the chance that AFF is not going to be built-in efficiently; the chance that the price financial savings, synergies and progress from the acquisition might not be totally realized or might take longer to understand than anticipated; the diversion of administration time on transaction-related points; and the chance that prices related to the combination of the companies are greater than anticipated; dangers associated to Mr. Rippel’s and his Associates future possession of roughly 16.6% of New Mum or dad’s excellent inventory after closing and the affect of future gross sales of such inventory by Rippel following the closing.

Moreover, if the acquisition is consummated, FirstCash shall be topic to extra dangers and uncertainties ensuing from its possession of AFF, together with, however not restricted to: inherent dangers ensuing from FirstCash’s entry into the road of companies at the moment performed by AFF; dangers associated to the intensive regulatory regimes that the AFF enterprise is topic to and the heightened impact of future regulatory or legislative actions, together with on the state stage, on AFF and the impact of compliance with enforcement actions, orders or agreements issued by relevant regulators; dangers associated to AFF’s underwriting practices, mortgage loss provision and the truth that AFF may expertise credit score losses considerably greater than historic losses or its mortgage loss provision; elevated competitors from different entities providing “purchase now, pay later” merchandise, together with bigger monetary establishments, retailers, internet-based lenders and different entities providing related monetary companies as AFF; lower in demand for AFF’s services as a result of adjustments within the normal financial surroundings, or social or political circumstances; the potential affect of the announcement or consummation of the acquisition on relationships with retailers, AFF’s financial institution companion, administration staff and different staff; threat associated to the continuing COVID-19 pandemic, together with authorities responses thereto comparable to stimulus packages which may affect demand for AFF’s merchandise; dangers associated to provide chain disruptions impacting the retailers with which AFF does enterprise and the affect that such disruptions may have on the demand for AFF’s merchandise; dangers associated to any present or future litigation proceedings; the flexibility to draw new clients and retailers and retain present clients and retailers within the method anticipated; dangers associated to AFF’s service provider focus; the flexibility to rent and retain key personnel; reliance on present data expertise programs; means to guard mental property rights; affect of safety breaches, cyber-attacks or fraudulent exercise on AFF’s operations and reputations; the dangers related to assumptions the events make in reference to the events’ important accounting estimates and authorized proceedings; and the potential of financial downturn or results of tax assessments or tax positions taken, dangers associated to goodwill and different intangible asset impairment, tax changes, anticipated tax charges, or different regulatory compliance prices.

Further data regarding different threat components can be contained in FirstCash’s most just lately filed Annual Reviews on Kind 10-Okay, subsequent Quarterly Reviews on Kind 10-Q, Present Reviews on Kind 8-Okay, and different Securities and Alternate Fee (“SEC”) filings.

Many of those dangers, uncertainties and assumptions are past FirstCash’s means to manage or predict. Due to these dangers, uncertainties and assumptions, you shouldn’t place undue reliance on these forward-looking statements. Moreover, forward-looking statements converse solely as of the data at the moment accessible to the events on the date they’re made, and FirstCash doesn’t undertakes any obligation to replace publicly or revise any forward-looking statements to replicate occasions or circumstances which will come up after the date of this communication. FirstCash doesn’t give any assurance (1) that both FirstCash or AFF will obtain its expectations, or (2) regarding any outcome or the timing thereof. All subsequent written and oral forward-looking statements regarding FirstCash, AFF, the acquisition or different issues and attributable to FirstCash, AFF or any individual performing on their behalf are expressly certified of their entirety by the cautionary statements above.

Contacts for FirstCash

Gar Jackson
World IR Group
Telephone: (817) 886-6998
Electronic mail:

Doug Orr, Government Vice President and Chief Monetary Officer
Telephone: (817) 258-2650
Electronic mail:
Web site:

Aaron Palash or Kara Sperry
Joele Frank, Wilkinson Brimmer Katcher


1 Jefferies analysis estimate for Purchase Now Pay Later addressable market; report dated Might 26, 2021
2 Adjusted EPS accretion excludes amortization of acquisition associated intangible property

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