Finbond Group to acquire an initial 17 percent stake in C1 Holdings
The acquisition will significantly improve Finbond’s fintech and data science exposure.
Finbond has entered into an agreement to acquire an initial 17 percent in C1 Holdings with the possibility of buying a further eight percent stake by 31 August 2021. Finbond plans to fund the C1 transaction from surplus cash on hand.
Finbond will pay $28 million (R409 million) in purchasing consideration for 17 percent of the shares in C1. The option to purchase the additional eight percent can be exercised only at Finbond’s discretion.
C1 is a fintech lender possessing state-of-the-art technology. Through its three main operating subsidiaries, C1 maintains market positions in the US and South America. C1 is primarily known for its three key brands, which include both consumer and business lending. C1’s well-known online and data science capabilities are at the cutting edge of technology.
Finbond is a leading South African and North American financial services company that specialises in the development and distribution of unique value and solution-based credit products that are customised to the needs of the borrower rather than institutionalised policies and practices. Finbond is a credit company that has both physical and online operations. Finbond has a total of 588 stores (352 in South Africa and 236 in North America), as well as online offerings in both South Africa and six states in the US.
The reasoning behind the acquisition is that C1’s dollar-based earnings will enhance Finbond’s growth, remarkably improve its fintech and data science vulnerability, and expand its operations to Central America with seven locations in Panama. The stake will also expand Finbond’s North American store network to 263, including a presence in the states of; Arizona and Nevada, in addition to the states of California, Louisiana, Illinois, Indiana and Florida.
The anticipated effective date of the transaction will be 1 May.