The firm advised CURO, the largest stockholder in Katapult Holdings, Inc., in the merger of Katapult into FinServ Acquisition Corp., a SPAC, which will result in Katapult becoming a public company.
On December 18, Willkie client CURO Group Holdings Corp. (NYSE: CURO), a market leader in providing credit to non-prime consumers, announced that Katapult Holding, Inc., a company approximately 40% owned by CURO and a leading provider of e-commerce point-of-sale lease purchase options for non-prime US consumers, and FinServ Acquisition Corp. (Nasdaq: FSRV), a publicly traded special purpose acquisition company, have entered into a definitive merger agreement. The transaction reflects an implied pro forma combined enterprise value for the company of approximately $1 billion and equity value of $962 million.
The transaction will provide approximately $365 million in total consideration to CURO in the form of cash and equity of the new company. CURO anticipates maintaining an ownership stake of at least 21% of the fully-diluted shares of the new public company.
CURO combines its market expertise with a fully integrated technology platform, omni-channel approach and advanced credit decisioning to provide an array of credit products across all mediums. CURO operates under a number of brands including Speedy Cash®, Rapid Cash®, Cash Money®, LendDirect®, Avío Credit®, Opt+® and Revolve Finance®.
The transaction was handled by partners Neil Townsend, David Cosgrove, William Gump and Thomas Mark and associates Thomas Spencer and Andrew Marmer.