FORT WORTH, Texas ( BUSINESS CABLE ) July 10, 2006 money America Overseas, Inc. (NYSE: CSH) announced today so it has finalized a definitive contract for the purchase for the assets of CashNetUSA. The acquisition will catapult money America to the distribution that is internet for temporary payday loans, complementing its community of 717 financing areas that provide payday loans in 20 states.
“By expanding our item distribution platform to incorporate access that is internet we think that we have been placed to provide a brand new consumer part beyond the reach of y our present bricks and mortar lending areas. This car will let us satisfy clients whom look for temporary payday loans rather than more expensive options to satisfy ease and convenience to their credit needs,” remarked Daniel R. Feehan, President and ceo of money America Global, Inc.
CashNetUSA has emerged as a frontrunner in the online cash loan business since its initial entry in to the market at the beginning of 2004. This has grown dramatically and provides payday loans in 27 states under relevant state rules and regulatory needs in each market so it acts. Using its proprietary computer software and distribution platform, CashNetUSA’s gross advance loan profile recently reached $22 million plus it estimates it has offered over 250,000 clients since inception.
The deal allows money America to ascertain an important existence within the quickly growing cash advance market that is online. “We regard this as a chance to leverage and build on the immediately success and momentum of CashNetUSA. The integration of the distribution channel provides us by having a foundation that is important this brand brand new opportunity for development in the bucks advance industry,” commented Mr. Feehan.
The overall regards to the deal consist of a purchase that is initial of around $35 million using the chance for additional consideration become compensated predicated on future profits performance. The deal is anticipated become finished within roughly 60 days, at the mercy of the receipt of needed regulatory as well as other approvals as well as other customary closing conditions. The CashNetUSA assets are considerably all the assets for the Check Giant, LLC as well as its affiliates. The Check Giant, LLC is really payday loan debt lawyer Minden a privately owned business based in Chicago, Illinois. Money America’s monetary and main appropriate advisors when you look at the transaction that is subject Jefferies and business, Inc. and Baker & McKenzie LLP, respectively. Money America will host a seminar call to go over the acquisition that is pending of on Monday, July 10th at 7:45 AM CST. To be controlled by the . A replay shall be accessible regarding the Investor Relations part of the business’s internet site for ninety days after the seminar call.
Also, in a unrelated pr release granted today, money America announced so it expects outcomes for it second quarter finished June 30, 2006 to go beyond administration’s initially posted guidance for profits per share. Please make reference to this other pr release which offers more information about this subject.
Money America Overseas, Inc. is really a provider of specialty monetary solutions to people in the usa with 896 total areas. Money America may be the provider that is largest of secured non recourse loans to people, commonly described as pawn loans, through 467 places in 21 states beneath the manufacturers Money America Pawn and SuperPawn. The organization now offers term that is short advances in lots of of its places including 291 areas that provide this solution underneath the manufacturers money America wage advance and Cashland. In addition, check cashing solutions are offered through its 138 franchised and business owned “Mr. Payroll” check always cashing facilities.
Secure Harbor Statement underneath the Private Securities Litigation Reform Act of 1995
This launch contains ahead searching statements in regards to the company, economic condition and leads of money America Overseas, Inc. and its particular subsidiaries (“the organization”). The specific link between the business could differ materially from those suggested because of the ahead looking statements as a result of different dangers and uncertainties including, without limitation, alterations in need for the business’s services, those things of 3rd parties who provide services and products during the business’s places, alterations in competition, the power regarding the business to start brand new running units prior to its plans, fiscal conditions, market changes, interest changes, alterations in the administrative centre markets, alterations in taxation along with other legislation and government foibles relevant towards the business’s business, the capability to effectively incorporate newly obtained organizations in to the business’s operations as well as other risks suggested in the business’s filings using the Securities and Exchange Commission. These dangers and uncertainties are beyond the capability associated with the business to regulate, nor can the Company predict, in lots of situations, most of the dangers and uncertainties that may cause its real leads to vary materially from those suggested by the ahead looking statements. Whenever found in this launch, terms such as for instance “believes,” “estimates,” “plans,” “expects,” “anticipates” and comparable expressions while they relate solely to the business or its administration are meant to determine ahead searching statements. The organization disclaims any intention or responsibility to upgrade or revise any statements that are forward looking mirror occasions or circumstances occurring following the date of the launch.