Advance America to Buy CompuCredit
The non-bank cash advance service provider will pick up 300 of CompuCredit’s locations for $45.6 million.
August 9, 2011
The NYSE-listed Advance America, Cash Advance Centers has agreed to acquire most of the assets of CompuCredit Holdings Corporation. Advance America will pay $45.6 million for 300 of the NASDAQ-listed retail storefront consumer finance business. The deal is expected to close during the fourth quarter of 2011.
CompuCredit, which is headquartered out of Atlanta, Georgia, remaining offices are situated in Lake Mary, Florida, St. Cloud Minnesota, and Las Vegas, Nevada.
The assets that are being sold are spread throughout nine states including Alabama, Colorado, Kentucky, Oklahoma, Mississippi, Tennessee, Wisconsin, Ohio and South Carolina. Collectively, the assets generated close to $42.3 million in outstanding gross advances and fees receivable. The business brought in $72.1 million in revenues and $20.3 million in gross profit last fiscal year which ended June 30, 2011.
Advance America currently runs more than 2,350 non-bank cash advance centers in 29 states, the UK, and Canada. The company’s president and CEO, Patrick O'Shaughnessy stated in the press release that the consumer demand for short-term credit continues to flourish and believes that CompuCredit will allow the business to gain consumer access to affordable financial services.
According to CompuCredit’s asset purchase agreement, the company tapped Troutman Sanders to handle legal matters with Andrea Farley as the lead. Advance America turned to K&L Gates for legal advice with Mark McMillan as the lead. The audit, financial advisory firm, Deloitte LLP also assisted on the deal.
PricewaterhouseCoopers and BDO Seidman served as accountants to Advance America and CompuCredit, respectively.
Advance America and CompuCredit did not return calls seeking additional comment by press time.
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