Page 1

goeasy goeasy Ltd. Announces Acquisition of LendCare for $ 320 Million and Concurrent $ 130 Million Bought Deal Equity Offering of Subscription Receipts LendCare is one of Canada's leading point - of - sale consumer financing providers Strategic acquisition accelerates growth through product and point - of - sale channel expansion Attractive valuation and synergies to assist in producing long - term return on equity of 25 % + High return business will contribute to history of compounding earnings growth at over 30 % Transaction expected to be immediately accretive to adjusted earnings per share , increasing to ~ 10 % in 2022 and ~ 15 % in 2023 NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Mississauga , April 12 , 2021 : goeasy Ltd. ( TSX : GSY ) , ( " goeasy ” or the “ Company ” ) , a leading full - service provider of goods and alternative financial services , announced today that it has entered into a definitive agreement to acquire LendCare Holdings Inc. ( " LendCare " ) , a Canadian point - of - sale consumer finance and technology company , from LendCare's founders and CIVC Partners ( the " Acquisition " ) . goeasy has agreed to acquire LendCare for $ 320 million , payable in a combination of cash and $ 10 million in common shares elected to be received by LendCare's founders as part of their consideration , at closing . The Acquisition is expected to close in the second quarter of 2021 , subject to customary closing conditions and regulatory approvals . The Acquisition of LendCare is expected to accelerate goeasy's growth in the consumer credit market through the expansion of its product range and point - of - sale distribution platform . Founded in 2004 , LendCare is one of Canada's leading point - of - sale financing providers , with approximately 3,000 merchant , OEM and distributor relationships nationwide . Through its proprietary origination software , LendCare specializes in financing consumer purchases in the powersports , automotive , retail , healthcare , and home improvement verticals . " We are pleased to be executing an acquisition with such strong strategic fit . Each year in Canada there is estimated to be more than $ 40 billion of credit extended to consumers through financing and “ buy - now , pay - later ” programs offered at the point - of- sale . Through this acquisition , we will strengthen our position as a leading provider of non - prime consumer credit , while also expanding our range of near - prime products and adding new industry verticals to our point - of - sale lending channel , " said Jason Mullins , goeasy's President & Chief Executive Officer , " The transaction is expected to accelerate our existing growth strategy , while providing immediate accretion to our adjusted earnings per share and contributing to our 20 year track record of compounding earnings growth at over 30 % . " " The Board of Directors is highly supportive of this transaction , as it meets all of our key investment criteria for capital allocation , " said David Ingram , goeasy's Executive Chairman of the Board , " The Company is planning to maintain a prudent leverage profile beneath our target level of 70 % net debt to net capitalization , while positioning itself to continue producing attractive long - term total returns for shareholders . " In 2020 , LendCare produced income before taxes , calculated under accounting standards for private enterprises ( ASPE " ) , of approximately $ 19 million and had approximately $ 400 million in consumer loans receivable as of December 31 , 2020. The purchase price of the Acquisition implies a multiple of approximately 13x the anticipated 2021 earnings of LendCare , calculated under international financial reporting standards ( " IFRS " ) after adjusting for certain items , as well as excluding the anticipated synergy opportunities . Revenue , funding , and cost synergies are expected to be realized primarily from optimizing credit and pricing to produce increased originations , cross - selling products to consumers , reducing the funding costs of the business and delivering back - office efficiencies . The Acquisition is aligned with goeasy's financial objectives and is anticipated to be immediately accretive to the Company's adjusted earnings per share1 , with accretion expected to increase to approximately 10 % in 2022 and approximately 15 % in 2023 . As part of the Acquisition , LendCare's founders , Ali Metel and Mark Schell , will assume management positions with goeasy , while maintaining responsibility for the ongoing operations of LendCare . " After building a leading point - of - sale financing platform over the last 15 years , we are excited for the next chapter of our growth with goeasy , " said Ali Metel , LendCare President & CEO , " Together , we offer a wide diversification of products and distribution