CURO Group Holdings, a US-based firm offering short-term credit to underbanked consumers, has agreed to acquire Ad Astra Recovery Services.
The company signed stock purchase agreement to acquire Ad Astra for $15.8m, subject to customary adjustments.
Ad Astra is a third-party servicing and recovery provider. Currently, CURO is its sole client.
The acquisition brings such services in-house and is expected to drive operational efficiency. The move is also expected to enhance compliance synergies at the company.
Additionally, it will enable CURO devise personalised CRM strategies and campaign management across the servicing and recovery lifecycle.
CURO president and CEO Don Gayhardt said: “We are always looking for opportunities to drive greater efficiencies in our business and to ensure a seamless journey for our customers, including account servicing and recoveries.
“To that end, we are excited to buy Ad Astra, our third-party servicing and recovery provider in the US and to have their 81 employees join our team in Wichita, Kansas. We believe that together we can delivery improved recovery performance at a reduced cost.”
The short-term credit provider expects the deal to be accretive to 2020 pre-tax earnings by around $5m to $6m.
Established in 1997, CURO Group Holdings offers online loans and financial services to underbanked people.
Last year, the company partnered with MetaBank to launch new credit product line in the US.