goeasy Ltd. announces the purchase of $ 31.9 million from Mogo Inc.
MISSISSAUGA, Ontario, February 28, 2020 (GLOBE NEWSWIRE) – kid Ltd. (TSX: GSY), (“kid“or the”Company“), a leading full-service provider of alternative financial goods and services, today announced a $ 31.9 million transaction to acquire a portfolio of consumer loans 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 a term of up to 5 years. In anticipation of the deal, goeasy has conducted a thorough review and due diligence of the loan portfolio. The purchase will take effect today, Friday, February 28, 2020. The transaction also includes approximately $ 12.4 million in previously written off consumer loans and a commitment to Mogo to market and promote easyfinancial to its current and potential members.
In addition to the acquisition of the loan portfolio, the transaction will include a three-year loan partnership with Mogo following a successful five-month pilot project that began in October 2019. As part of this agreement, goeasy will become the exclusive supplier de Mogo of all non-privileged consumer loans. . Through the program, clients who obtain non-senior loans in Mogo’s mobile app will have their loan funded by goeasy’s operating division, easyfinancial. To facilitate the loan transaction, the two companies incorporated technology to create a seamless customer experience and enable goeasy to approve and finance loans that meet desired credit criteria. Mogo will receive compensation for loans funded by goeasy, in addition to volume-based incentive payments.
“We are delighted with our partnership with Mogo, one of the leading financial technology platforms in Canada. Acquiring this consumer loan portfolio, which resembles our core unsecured loan product with risk-based pricing, will help accelerate our growth and bring a positive benefit to our 2020 results. The Lending Partnership is also aligned with our strategy of expanding our acquisition channels by leveraging partnerships with third parties, ”said Jason Mullins, president and CEO of goeasy. “As we move the loan portfolio from Mogo to easyfinancial, we look forward to building strong relationships with these clients and offering them our full range of financial products and services designed to help them improve their credit and move on to financial success. lower rate. ”
goeasy Ltd., a Canadian company headquartered in Mississauga, Ontario, provides leasing and subprime lending services through its easyhome and easyfinancial divisions. With a wide variety of financial products and services, including secured and unsecured installment loans, goeasy aspires to help Canadians on the path to a better financial future, as they rebuild their credit and move to prime credit. order. Customers can transact seamlessly with easyhome and easyfinancial through an omnichannel model that includes online and mobile, as well as over 400 rental and loan locations across Canada supported by more than 2,000 employees.
Throughout its history, the company has served more than one million Canadians and has issued more than $ 3.9 billion in loans, with one in three customers moving to blue chip credit and 60% increasing their credit score. credit 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 is included in the Report on Business ranking of Canada’s fastest growing companies. The company and its employees strongly believe in giving back to the communities in which it operates and have raised over $ 2.9 million to support its long-standing partnerships with Boys and Girls Clubs of Canada and Habitat for the humanity.
goeasy Ltd. the common shares are listed on the TSX under the symbol “GSY” and the goeasy convertible debentures trade on the TSX under the 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.
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President and CEO