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FlexiGroup expands NZ footprint with acquisition

Diversified financial services firm FlexiGroup has announced it has entered into an agreement to acquire a leading provider of non-bank consumer credit in New Zealand.

The group – which currently provides various financial services including leasing, vendor finance, credit cards and lay-by payment options – has agreed to pay Fisher & Paykel Appliances $275 million for its finance division, Fisher & Paykel Finance.

FlexiGroup said the purchase will be funded through a $150 million capital raising launched yesterday, expansion of existing corporate debt facilities to $187.5 million provided by three Australian major bank lenders, and surplus cash.

David Stevens, active chief executive at FlexiGroup, said Fisher & Paykel Finance is a very high-quality asset that the group worked hard to secure because it compliments and offers synergy to FlexiGroup’s existing credit card business.

“This is a transformational deal for FlexiGroup on so many levels that positions us as one of the leading non-bank financial services providers across Australia and New Zealand,” he said.

“We have acquired a unique brand of card brands and strong partner relationships across numerous industries.

“Fisher & Paykel Finance will significantly enhance the scale of FlexiGroup’s NZ operations, provide access to new industry channels both in NZ and Australia, and opportunities for customer growth.”

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FlexiGroup announced in August that it had increased its net profit by six per cent to $90.1 million over the 12 months to 30 June 2015, with the group’s volumes increasing five per cent to $1.1 million, and its closing receivables rising eight per cent to $1.4 million.

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