BERWYN, Pa.--(BUSINESS WIRE)--Dollar Financial Corp (NASDAQ:DLLR), a leading international diversified financial services company serving primarily unbanked and under-banked consumers for over 30 years, today announced the acquisition of Risicum Oyj (“Risicum”), the leading provider of internet loans in Finland with headquarters in Helsinki, Finland. Risicum, which was established in 2005, provides loans predominantly in Finland through both internet and mobile phone technology, utilizing multiple brands to target specific customer demographics. Risicum also provides internet and telephony-based loans in Sweden. The total purchase price of the transaction at closing was approximately $46.0 million.
Commenting on the acquisition, Jeff Weiss, the Company’s Chairman and Chief Executive Officer, stated, “We are pleased to welcome the Risicum management team into the Dollar family and intend to leverage their expertise in Dollar’s continuing development of a global internet lending business. The acquired technology and collections platform is scalable for growth and originally designed to be exported to other countries in Scandinavia and the Baltics. The acquisition further expands our global footprint and product portfolio to unsecured short-term loans in Finland and Sweden, which nicely dovetails with our position as the leading pawn lender in Scandinavia. Scandinavia continues to be a strategic market for our products and services with long-standing product regulations coupled with a fragmented competitive landscape.
"It is our mission to be the leading global provider of financial services to the under-banked and unbanked consumer, which we refer to as the ALICE demographic (or asset limited, income constrained, employed). The ALICE customer segment is increasing all around the globe, and we are squarely focused on expanding our set of products and services and delivery platforms in existing and new markets to meet their growing financial services needs. We believe one of the most efficient and cost-effective ways to enter new markets and access the growing ALICE population is through an internet-based product delivery platform, as it enables quicker access to these customers without having to construct a more expensive ‘brick and mortar” store network. Furthermore, we believe the ever growing consumer awareness and advancement of eCommerce technology throughout the world will result in a trend towards a preference for quick and easy web or telephony based financial transactions. In order to maintain our position as the leading global provider of financial services to the unbanked and under-banked consumers, we need to be on the leading edge of this technological revolution. As a result of this acquisition, we now offer internet loans in four countries (U.K., Finland, Sweden, and Canada).”
The trailing twelve months EBITDA for Risicum is approximately $9.2 million and the acquisition is expected to be immediately accretive to earnings. The Company expects to provide its initial earnings outlook for fiscal 2012, including the Risicum business net of acquisition and transition costs, when the Company announces its financial results for the fiscal year ended June 30, 2011.
About Dollar Financial Corp
Dollar Financial Corp is a leading international diversified financial services company primarily serving unbanked and under-banked consumers and small business owners for over 30 years. Through its retail storefront locations as well as by other means, such as via the Internet, the Company provides a range of consumer financial products and services in seven countries (Canada, the United Kingdom, the United States, the Republic of Ireland, Sweden, Finland and Poland) to consumers who, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. The Company’s products, principally its short-term consumer loans, check cashing services, secured pawn loans and gold buying services, provide customers with immediate access to cash for living expenses or other episodic needs. The Company also offers high-value ancillary services, including Western Union money order and money transfer products, electronic tax filing, reloadable VISA® and MasterCard® debit cards, foreign currency exchange, and other services. In addition, through its branded Military Installment Loan and Education Services, or MILES® program, the Company provides fee based services to enlisted military personnel applying for loans to purchase new and used vehicles that are funded and serviced under an exclusive agreement with a major third-party national bank.
At March 31, 2011, the Company’s global retail operations consisted of 1,236 locations, including 1,144 company-operated financial services stores and 92 franchised and agent locations, conducting business primarily under the names Money Mart®, Money Shop®, Insta-Cheques®, The Check Cashing Store®, Sefina and MoneyNow® in Canada, the United Kingdom, the United States, the Republic of Ireland, Sweden, Finland and Poland. For more information, please visit the Company's website at www.dfg.com.
Dollar Financial Forward Looking Statement
This news release contains forward looking statements, including, among other things, statements regarding the following: pending or recent acquisitions and their expected benefits; the Company’s future results, growth, guidance and operating strategy; the global economy; the effects of currency exchange rates on reported operating results; the developing regulatory environment in Canada, the United Kingdom, the United States, and other countries; the impact of future development strategy, new stores and acquisitions; litigation matters; expected financing initiatives; and the performance of new products and services. These forward looking statements involve risks and uncertainties, including risks related to: the regulatory environments; current and potential future litigation; the identification of acquisition targets; the consummation of announced pending acquisitions, the integration and performance of acquired stores and businesses; the performance of new stores; the impact of debt financing transactions; the results of certain ongoing income tax appeals; and the effects of new products and services on the Company’s business, results of operations, financial condition, prospects and guidance; and uncertainties related to the effects of changes in the value of the U.S. Dollar compared to foreign currencies. There can be no assurance that the Company will attain its expected results, successfully consummate announced pending acquisitions, successfully integrate any of its acquisitions, obtain acceptable financing, or attain its published guidance metrics, or that ongoing and potential future litigation or the various FDIC, Federal, state, Canadian, U.K. or foreign legislative or regulatory activities affecting the Company or the banks with which the Company does business will not negatively impact the Company’s operations. A more complete description of these and other risks, uncertainties and assumptions is included in the Company’s filings with the Securities and Exchange Commission, the Company’s annual reports and Forms 10-Q and 10-K. You should not place any undue reliance on any forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.