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.”
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.