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EZCorp Acquires 128 Cash Apoyo Efectivo Pawn Stores in Mexico
Thursday 10 June 2021

Texas-based pawn shops operator EZCorp, Inc. (NASDAQ: EZPW) has acquired 128 Mexican pawn stores, operating under the name Cash Apoyo Efectivo, bringing EZCorp's total number of pawnshops to 1,154, 638 of which are in Latin America, the company said.

The initial purchase price of USD 33.8m includes cash of USD 17.3m, 212,870 shares of the company's class A Non-Voting common stock valued at USD 1.6m, and repayment of USD 14.9m of Cash Apoyo Efectivo's existing debt.

The sellers will be entitled to additional payments of up to USD 4.6m over the next two years, contingent on the performance of the acquired stores.

The addition of the 128 Cash Apoyo Efectivo stores solidifies EZCorp's position as the second largest for-profit competitor in Mexico.

The acquisition is the company's largest to date in terms of store-count. With this acquisition, the company now operates a total of 1,154 pawn stores, 638 of which are in Latin America, including 503 in Mexico.

EZCorp is a provider of pawn transactions in the United States and Latin America. The company sells merchandise, primarily collateral forfeited from pawn operations and pre-owned merchandise purchased from customers.
Date Published: 10/06/2021