Enova International, a leading financial technology and analytics company offering consumer and small business loans and financing, announced it has completed the acquisition of On Deck Capital, a leader in online lending for small business, for $1.89 per share, or approximately $122 million. The acquisition creates a company with significant scale and diverse product offerings in consumer and small business market segments with combined originations of nearly $5 billion in 2019 and approximately seven million customers.
Under the terms of the agreement, OnDeck shareholders received 0.092 of a share of Enova common stock and $0.12 in cash for each share of OnDeck held.
“We are excited to announce the completion of the acquisition of OnDeck. The combination establishes Enova as a premier Fintech lender with substantial scale and a diversified portfolio of brands and products,” said David Fisher, CEO of Enova. “The operational integration plans and ability to recognize meaningful synergies and financial benefits of the acquisition are on track. We remain well positioned to drive long-term, profitable growth for our shareholders while addressing the needs of consumers and small businesses whose need for access to credit is even more critical in the wake of the COVID pandemic and current economic environment.”
As previously announced, the transaction is anticipated by Enova to result in approximately $50 million in annual cost synergies and approximately $15 million in run-rate net revenue synergies to be fully phased-in by year-end 2022. The transaction is expected to be accretive in the first year post-closing and is expected to generate earnings per share accretion of more than 40% when synergies are fully realized.
Enova’s management will discuss its quarterly results and business outlook during its third quarter 2020 earnings conference call later this month.
