- MoneyMe (MME) is planning to acquire fellow online lender SocietyOne for $132 million in cash and shares
- The fintech stock is offering up to 75.2 million of its own shares under the deal, while the cash component of the consideration won’t total more than $9.7 million
- MME says by acquiring SocietyOne it will increase its customers, growth trajectory and bring in $146 million in annualised revenue
- For the purchase to go ahead, 92.5 per cent of SocietyOne investors will need to accept MME shares, giving them a 28.9 per cent stake in MoneyMe
- MoneyMe shares are up 0.28 per cent at $1.77 per share
MoneyMe (MME) has announced plans to acquire fellow online lender SocietyOne for $132 million in cash and shares.
The fintech stock is offering up to 75.2 million of its own shares under a Merger Implementation Agreement.
SocietyOne can also walk away with up to $9.7 million in cash, the maximum amount of cash to be issued as part of the consideration.
MME is interested in acquiring SocietyOne as it will increase its customers, growth trajectory and bring in around $146 million in annualised revenue all up.
MoneyMe CEO Clayton Howes said the business runs similar businesses, and a merger would result in many synergies.
“The SocietyOne acquisition combines two of the most widely recognised consumer credit disruptors to deliver immediate scale advantages and incremental revenue opportunities,” he said.
“The opportunity to accelerate growth and cost efficiencies are quickly realised by combining the strengths of both brands and migrating SocietyOne operations onto MoneyMe’s high-tech Horizon Technology Platform.
“The SocietyOne brand will continue to thrive and will benefit from access to MoneyMe’s diversified product set and ability to deliver leading customer experiences.”
For the acquisition to go ahead, 92.5 per cent of SocietyOne investors will need to accept MME shares, and MoneyMe shareholders also need to sign off on the idea.
So far, 78 per cent of SocietyOne have agreed to receive MME shares and once 92.5 per cent sign off they’ll own a 28.9 per cent stake in MoneyMe.
It’s expected the acquisition will be completed in March 2022 and SocietyOne may nominate one of its own leaders to become a director at MME.
MoneyMe shares were trading up 0.28 per cent at $1.77 each at 1:06 pm AEDT.