Willkie Represents CURO Group Holdings in $1 Billion Merger of Katapult and FinServ Acquisition Corp.

December 24, 2020

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.