FirstCash adds $75M contingent payment to American First Finance deal
Dec. 07, 2021 7:41 AM ETFirstCash Holdings, Inc. (FCFS)By: Liz Kiesche, SA News Editor
- Due to the volatility of its stock price, FirstCash (NASDAQ:FCFS) amends its agreement to acquire American First Finance to provide for an additional contingent payment of $75M.
- At the time of the original agreement in October, the deal consideration, comprised of 8.05M shares of FirstCash (FCFS) stock and $406M in cash, was valued at ~$1.17B. Based on FCFS's closing stock price on Dec. 3, the estimated value is now ~$916M.
- In addition, the amendment adds a fixed $25M working capital payment payable Dec. 31, 2022.
- FirstCash (FCFS) has obtained the necessary antitrust approval and expects to get all other required regulatory approvals for the deal in coming weeks. It expects to close the acquisition by the end of the year.
- FirstCash (FCFS) in October said the acquisition brings the company into the growing point-of-sale payments market and will provide significant revenue and earnings growth opportunities.