CHICAGO, Oct. 13, 2020 /PRNewswire/ -- Enova
International (NYSE: ENVA), a leading financial technology and
analytics company offering consumer and small business loans and
financing, today announced it has completed the acquisition of On
Deck Capital, Inc. (NYSE: ONDK), 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.
In connection with the closing of the acquisition, ONDK's common
stock will cease to be publicly traded on
the NYSE today.
Grant of Equity Inducement Award
In connection with the transaction, Enova will grant
$1.16 million payable in restricted
stock units (RSUs) of Enova common stock to Noah Breslow, OnDeck's former CEO, who will
become an Enova employee following the transaction. The award will
be granted shortly after the closing of the transaction, and
subject to the terms and conditions of the applicable award
agreement. Portions of the award will vest six months and twelve
months from the date of the grant.
The actual number of RSUs granted will be determined based on
the 45-day average of the closing price of Enova stock through the
day prior to the date of closing of the transaction.
The award is intended to be an Employment Inducement Award under
the NYSE's Listed Company Manual Rule 303A.08.
About Enova
Enova (NYSE: ENVA) is a leading provider
of online financial services to non-prime consumers and small
businesses, providing access to credit powered by its advanced
analytics, innovative technology, and world-class online platform
and services. Enova has provided more than 7 million customers
around the globe with access to more than $20 billion in loans and financing. The financial
technology company has a portfolio of trusted brands serving
consumers, including CashNetUSA®, NetCredit® and Simplic®; two
brands serving small businesses, Headway Capital® and The Business
Backer®; and offers online lending platform services to lenders.
Through its Enova Decisions™ brand, it also delivers on-demand
decision-making technology and real-time predictive analytics
services to clients. You can learn more about the company and its
brands at www.enova.com.
Forward-looking Statements
This release contains
forward-looking statements within the meaning of and subject to the
safe harbor created by, Section 21E of the Securities Exchange Act
of 1934, as amended, about the business, strategy, financial
condition and prospects of Enova, its expectations relating to the
transaction and its future financial condition and performance,
including anticipated synergies from the transaction. Statements
that are not historical facts, including statements about Enova's
management's beliefs and expectations, are forward-looking
statements. Words such as "believes", "anticipates",
"estimates", "expects", "intends", "aims", "potential", "will",
"would", "could", "considered", "likely", "estimate" and variations
of these words and similar future or conditional expressions are
intended to identify forward-looking statements but are not the
exclusive means of identifying such statements. These
forward-looking statements give current expectations or forecasts
of future events and reflect the views and assumptions of Enova's
senior management as of the date of this release and are not
guarantees of future performance. The actual results of Enova could
differ materially from those indicated by such forward-looking
statements because of a number of factors affecting Enova's
business and risks associated with the successful execution and
integration of the transaction and the performance of the combined
company's business following such transaction. These factors
include, among others, the possibility that any of the anticipated
benefits of the transaction will not be realized or will not be
realized within the expected time period; the ability of Enova to
integrate the OnDeck business successfully and to achieve
anticipated synergies; potential litigation relating to the
transaction; the risk that disruptions from the transaction will
harm Enova's business or the acquired OnDeck business; continued
availability of capital and financing on favorable terms or at all;
legislative, regulatory and economic developments; potential
business uncertainty, including changes to existing business
relationships, as a result of the transaction that could affect
Enova's and/or the acquired OnDeck business' financial performance;
dilution caused by Enova's issuance of shares of its common stock
in connection with the transaction; and such other risks and
uncertainties detailed in Enova's periodic public filings with the
SEC, including but not limited to those discussed under "Cautionary
Note Concerning Factors That May Affect Future Results" and "Risk
Factors" in Enova's Form 10-K for the fiscal year
ended December 31, 2019 and in its Form 10-Q for each of
the quarterly periods ended March 31, 2020 and June 30, 2020, respectively; in Enova's
subsequent filings with the SEC and in other investor
communications of Enova from time to time. These risks and
uncertainties are beyond the ability of Enova to control, and, in
many cases, Enova cannot predict all of the risks and uncertainties
that could cause actual results to differ materially from those
indicated by the forward-looking statements. Enova cautions you not
to put undue reliance on these forward-looking statements. Enova
disclaims any intention or obligation to update or revise any
forward-looking statements after the date of this release.
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SOURCE Enova International, Inc.
