FORT WORTH, Texas ( BUSINESS CABLE ) July 10, 2006 money America Overseas, Inc. (NYSE: CSH) announced today it has signed a definitive agreement for the purchase associated with assets of CashNetUSA. The acquisition will catapult money America to the distribution that is internet for short-term payday loans, complementing its community of 717 financing areas that provide payday loans in 20 states.
“By expanding our item distribution platform to add internet access, we believe our company is placed to provide a new consumer section beyond the reach of our present bricks and mortar lending places. This car will let us satisfy clients who look for temporary payday loans in the place of more expensive options to meet up their credit requirements with simplicity and convenience,” remarked Daniel R. Feehan, President and ceo of Cash America Overseas, Inc.
CashNetUSA has emerged as a frontrunner into the online cash loan company since its initial entry in to the market during the early 2004. It offers grown dramatically while offering payday loans in 27 states under http://www.paydayloansmichigan.org relevant state guidelines 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 also it estimates so it has offered over 250,000 clients since inception.
The transaction enables money America to ascertain a significant existence when you look at the quickly growing online cash loan market. “We treat this as a way to leverage and instantly build regarding the success and momentum of CashNetUSA. The integration with this distribution channel provides us by having a essential foundation in this brand new opportunity for development in the money advance industry,” commented Mr. Feehan.
The overall regards to the deal consist of a purchase that is initial of around $35 million using the window of opportunity for extra consideration become compensated centered on future profits performance. The deal is anticipated become finished within about 60 days, susceptible to the receipt of needed regulatory along with other approvals as well as other customary closing conditions. The CashNetUSA assets are substantially most of the assets associated with the Check Giant, LLC and its particular affiliates. The Check Giant, LLC is a privately owned business located in Chicago, Illinois. Money America’s economic and main appropriate advisors when you look at the topic deal are Jefferies and business, Inc. and Baker & McKenzie LLP, correspondingly.
Cash America will host a seminar call to go over the acquisition that is pending of on Monday, July . A replay will be accessible from the Investor Relations part of the business’s internet site for 3 months following meeting call.
Furthermore, within an unrelated news release released 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 news release which offers more information on this subject.
Money America Overseas, Inc. is really a provider of specialty monetary services to people in the usa with 896 locations that are total. Money America may be the biggest provider of guaranteed non recourse loans to people, commonly described as pawn loans, through 467 places in 21 states beneath the brands Money America Pawn and SuperPawn. The business also provides term that is short advances in several of the places including 291 areas that provide this solution underneath the manufacturers money America pay day loan and Cashland. In addition, check cashing solutions are given through its 138 franchised and business owned “Mr. Payroll” always check cashing facilities.
Secure Harbor Statement underneath the Private Securities Litigation Reform Act of 1995
This launch contains ahead looking statements concerning the business, economic condition and leads of Cash America Overseas, Inc. and its own subsidiaries (“the organization”). The specific outcomes of the business could differ materially from those suggested because of the ahead looking statements due to different dangers and uncertainties including, without limitation, alterations in need for the business’s solutions, those things of 3rd events who provide products in the organization’s areas, alterations in competition, the power for the business to open up brand new running units relative to its plans, fiscal conditions, housing market changes, rate of interest changes, alterations in the administrative centre areas, alterations in taxation along with other guidelines and government foibles relevant towards the organization’s company, the capacity to successfully incorporate newly obtained companies to the organization’s operations as well as other risks suggested in the business’s filings aided by the Securities and Exchange Commission. These risks and uncertainties are beyond the power associated with the business to regulate, nor can the Company predict, quite often, most of the dangers and uncertainties which could cause its real leads to vary materially from those suggested by the statements that are forward looking. Whenever found in this launch, terms such as for example “believes,” “estimates,” “plans,” “expects,” “anticipates” and comparable expressions while they connect with the business or its administration are designed to recognize ahead searching statements. The business 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 release.