Atlanticus buys Mercury Financial for at least $162M in cash

Atlanticus buys Mercury Financial for at least $162M in cash

Atlanticus Holdings Corporation (NASDAQ: ATLC) has announced the acquisition of Mercury Financial LLC, a leading data-driven credit card platform serving near-prime consumers, in a deal valued at approximately $162 million in cash. The acquisition, which includes potential future earn-out payments based on portfolio performance, adds $3.2 billion in credit card receivables and 1.3 million credit card accounts to Atlanticus' portfolio, expanding its total managed receivables to over $6 billion and increasing its serviced accounts to more than 5 million .

Mercury Financial's technology-centric platform will complement Atlanticus' existing products, including general purpose credit cards, retail credit, patient financing, and dealer solutions. The integration of Mercury's near-prime capabilities with Atlanticus' existing infrastructure is expected to create scale efficiencies and expand their addressable market into higher credit quality segments.

Atlanticus' President and CEO, Jeff Howard, commented, "We are excited to welcome the Mercury team to Atlanticus. Their technology and near-prime expertise will enable us to expand our reach and advance our growth efforts, leveraging the scale that the combined companies create to bring a best-in-class product offering at the lowest possible cost to an even broader consumer segment."

The acquisition also includes potential future earn-out payments based on portfolio credit performance, with integration initiatives focused on portfolio optimization, cost synergies, and increased originations through bank partners. Atlanticus has previously purchased over $6 billion in credit card receivables portfolios throughout its history, indicating a strong track record in portfolio acquisitions .

The transaction is expected to drive significant value creation through portfolio optimization strategies, cost synergies, and increased originations on behalf of bank partners. Additional growth opportunities include increased customer acquisition through new marketing channels and product expansion within Mercury's channels and Atlanticus' existing markets.

The acquisition of Mercury Financial adds an established top 25 credit card program to the suite of programs that Atlanticus manages on behalf of bank partners. Mercury’s credit card offerings, including Mercury branded and co-branded programs, complement Atlanticus’ general purpose credit card, retail credit, patient financing, and dealer solutions products .

Atlanticus' post-acquisition integration initiatives are expected to drive significant value creation through portfolio optimization strategies, cost synergies, and increased originations on behalf of bank partners. Additional growth opportunities include increased customer acquisition through new marketing channels and product expansion within Mercury’s channels and Atlanticus’ existing markets.

Advisors to the transaction include Guggenheim Securities, LLC as financial advisor to Atlanticus and Troutman Pepper Locke and Willkie Farr & Gallagher as legal counsel. Deutsche Bank Securities served as financial advisor to the seller, and Mayer Brown LLP served as legal counsel to the special committee of the board of the seller in this transaction .

Contact Information:
Investor Relations
(770) 828-2000