FirstCash, Inc. the leading international operator of over 2,800 retail pawn stores in the U.S. and Latin America, announced that it has entered into a definitive agreement to acquire American First Finance, Inc. a rapidly growing, technology-driven virtual lease-to-own and retail finance provider focused on underserved, non-prime customers. Under the terms of the agreement, the total consideration payable at closing is valued at approximately $1.17 billion, based on FirstCash’s closing stock price on October 26, 2021, consisting of approximately 8.05 million shares of common stock and $406 million in cash, subject to a net debt adjustment. Up to an additional $300 million of consideration is payable in the event AFF achieves certain performance targets through the first half of 2023.
FirstCash will form a new parent company, which will assume FirstCash’s listing on the Nasdaq and maintain the “FCFS” ticker symbol. At closing, the existing shares of FirstCash stock will automatically convert on a one-for-one basis into shares of common stock of the new FirstCash parent company. The transaction has been unanimously approved by FirstCash’s Board of Directors and is expected to close in late 2021 or early first quarter of 2022, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals, including antitrust approvals.