FirstCash to buy American First Finance in $1.17bn deal

AFF is a technology-driven virtual lease-to-own and retail finance provider focused on non-prime customers.

Under the terms of the agreement, AFF shareholders will receive 8.05m in shares and $406m in cash, subject to a net debt adjustment. There is also up to an additional $300m payable in the event that AFF achieves certain performance targets through the first half of 2023.

FirstCash said the deal will launch it into "the large and growing" point-of-sale (POS) and buy now pay later payment space, which is estimated to have a $600bn total addressable market.

Chief executive officer and vice chairman Rick Wessel said: "Since our founding more than 30 years ago and through the merger of First Cash and Cash America in 2016, we have successfully executed on our growth strategy and established FirstCash as a leading retailer and provider of financial services to underserved consumers, while delivering significant value to shareholders.

"Building on the complementary strengths of FirstCash and American First Finance, this transaction diversifies us beyond our core pawn business with the addition of a fast-growing segment that significantly expands our customer base and introduces a scalable, technology-driven product set into our organisation."