by Michael Dabai
Firstcash Inc. on Tuesday said it has amended its agreement to acquire American First Finance Inc.
Given the recent volatility in the stock price of FirstCash, the amendment provides for an additional contingency consideration of up to $75 million based on the company’s stock performance as of February 28, 2023.
Firstcash said there would be no contingency consideration if the company’s highest average stock price is $86.25 per share or more for any 10-day period prior to that date.
The transaction is now valued at approximately $916 million based on the company’s $63.43 closing stock price on Friday, compared to an estimated valuation of $1.17 billion at the time of the announcement. Shares closed Monday at $64.09. Shares are down 8.5% year-over-year and have declined since late October.
The total consideration payable at closing remains unchanged, which includes approximately 8.05 million shares of common stock and $406 million in cash.
If American First Finance meets the performance target by the first half of 2023, an additional $300 million may be considered.
Firstcash, an operator of retail pawn stores in the US and Latin America, said in late October that it has agreed to acquire American First Finance, a virtual lease-to-own and retail finance provider.
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