Payday Loan Company Completes Takeover
By J.J. CameronPayday Loan Writer
Cash America International, Inc. announced this week that it's completed the purchase of substantially all of the assets of CashNetUSA.
The acquisition, which was announced in mid-July, establishes a significant Internet distribution channel for the payday loan company to provide short-term cash advances to its customers. This only paints a brighter picture for CashNetUSA, which emerged as a leader in the online cash advance business since its entry into the market in early 2004.
Today, the business serves customers in 27 states and will now complement Cash America's 758 payday advance lending locations.
"The integration of CashNetUSA into the Cash America platform to offer financial solutions to our customers provides us with another tool to reach this growing market for our products," said Daniel R. Feehan, President and Chief Executive Officer of Cash America International, Inc. "This transaction also opens the longer term opportunity to explore ways to further expand our product offerings and market penetration through internet technology and its related electronic distribution advantages."
The initial purchase price was approximately $35 million in cash, with the opportunity for additional consideration to be paid based on future earnings performance. The CashNetUSA assets are substantially all of the assets of The Check Giant LLC, a privately owned quick payday loan company based in Chicago, Illinois.
