EZCORP to Acquire Controlling Interest in Crediamigo
EZCORP, Inc. (Nasdaq: EZPW) announced today that it has entered into a definitive agreement to acquire a 60% ownership interest in Prestaciones Finmart, S.A. de C.V., SOFOM, E.N.R., a specialty consumer finance company headquartered in Mexico City.
Crediamigo is one of the top three and fastest growing providers of payroll deduction loans in Mexico. The company enters into agreements with various employers that permit it to market non-collateralized loans to employees. Interest and principal payments are withheld by the employers through payroll deductions and paid over to Crediamigo. Crediamigo currently has 170 such agreements, mostly with Mexican governmental agencies and organizations, and has access to more than 3.5 million employees.
Loan amounts range from MXP 2,000 to MXP 100,000 (approximately $150 to $7,500 USD) and average MXP 16,000 (approximately $1,200 USD), and loan terms range from one to four years and average 27 months. Crediamigo's current loan portfolio totals approximately MXP 1.25 billion (approximately $92.6 million USD).
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