Lone Star Funds is taking financial services provider DFC Global Corp. (Nasdaq: DLLR) private in a deal valued at $1.3 billion.
The target is a financial services company that targets unbanked and underbanked consumers and provides loans, pawn loan, check cashing, gold buying and money transfers. DFC Global, formerly known as Dollar Financial Corp., expects the deal to give the company increased financial flexibility.
The purchase price works out to $9.50 per share, plus assumed debt. The company's stock closed at $8.98 on April 1, before the deal was announced.
Lone Star is a Dallas private equity firm that focuses on real estate, equity, credit and other financial assets. The firm has raised more than $45 billion since it was started in 1995. In June, the firm agreed to buy assets from French industrial and construction company Lafarge SA.