MISSISSAUGA, Ontario, Feb. 28, 2020 (GLOBE NEWSWIRE) -- goeasy Ltd. (TSX: GSY), (“goeasy” or the “Company”), a leading full-service provider of goods and alternative financial services, announced today a $31.9 million transaction to acquire a consumer loan portfolio from Mogo Inc. (TSX:MOGO) (NASDAQ:MOGO), which has a gross receivables balance of approximately $31.9 million and approximately 5,700 active customers, consisting of personal installment loans with terms of up to 5 years. In contemplation of the transaction, goeasy performed a thorough review and due diligence of the loan portfolio. The purchase will close effective today, Friday, February 28, 2020. The transaction also includes approximately $12.4 million of previously written off consumer loans and a commitment for Mogo to market and promote easyfinancial to its current and prospective members.
In addition to acquiring the loan portfolio, the transaction will include a three-year lending partnership with Mogo after a successful five-month pilot that began in October 2019. Under this arrangement, goeasy will become Mogo’s exclusive provider of all non-prime consumer loans. Through the program customers that obtain non-prime loans within Mogo’s mobile app will have their loan funded by goeasy’s operating division, easyfinancial. To facilitate the loan transaction, the two companies have integrated technology to create a seamless customer experience and enable goeasy to approve and fund loans that meet its desired credit criteria. Mogo will receive compensation for loans funded by goeasy, in addition to volume-based incentive payments.
“We are excited about our partnership with Mogo, one of Canada’s leading fintech platforms. The acquisition of this consumer loan portfolio, which resembles our core unsecured loan product with risk-based pricing, will help accelerate our growth and provide positive benefit to our 2020 earnings. The lending partnership also aligns to our strategy of expanding our acquisition channels by leveraging third party partnerships,” said Jason Mullins, goeasy’s President and CEO. “As we transition Mogo’s loan portfolio to easyfinancial, we look forward to building strong relationships with these customers and to offer them our full suite of financial products and services designed to help improve their credit and graduate to lower rates.”
About goeasy
goeasy Ltd., a Canadian company, headquartered in Mississauga, Ontario, provides non-prime leasing and lending services through its easyhome and easyfinancial divisions. With a wide variety of financial products and services including unsecured and secured instalment loans, goeasy aspires to help put Canadians on a path to a better financial future, as they rebuild their credit and graduate to prime lending. Customers can transact seamlessly with easyhome and easyfinancial through an omni-channel model that includes online and mobile, as well as over 400 leasing and lending locations across Canada supported by more than 2,000 employees.
Throughout the company’s history, it has served over 1 million Canadians and originated over $3.9 billion in loans, with one in three customers graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.
goeasy is the proud recipient of several awards including Waterstone Canada’s Most Admired Corporate Cultures, Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces in North America, Greater Toronto Top Employers Award, the Digital Finance Institute’s Canada’s Top 50 FinTech Companies, ranking on the TSX30 and placing on the Report on Business ranking of Canada’s Top Growing Companies. The company and its employees believe strongly in giving back to the communities in which it operates and has raised over $2.9 million to support its long-standing partnerships with the Boys & Girls Clubs of Canada and Habitat for Humanity.
goeasy Ltd.’s. common shares are listed on the TSX under the trading symbol “GSY” and goeasy’s convertible debentures are traded on the TSX under the trading symbol “GSY-DB”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s. Visit www.goeasy.com.
For further information contact:
Jason Mullins
President & Chief Executive Officer
(905) 272-2788