MISSISSAUGA, Ontario, June 27, 2022 (GLOBE NEWSWIRE) -- goeasy Ltd. (TSX: GSY), (“goeasy” or the “Company”), one of Canada’s leading non-prime consumer lenders, announced today that it has entered into a strategic commercial partnership and agreed to make a minority equity investment of $40 million, in Canada Drives (“Canada Drives”), Canada’s largest 100% online car shopping and to-your-door delivery platform.
Through this new strategic partnership, goeasy’s automotive and point-of-sale financing brand, LendCare, will become a preferred non-bank financing provider within Canada Drives’ online automotive retail platform. Each year in Canada there are more than three million used vehicles sold, worth nearly $40 billion in sales volume. Canada Drives’ innovative and industry leading platform enables customers to shop, purchase, finance, and trade-in vehicles completely online, providing a superior customer experience from first click to delivery. Through the strategic commercial partnership, goeasy will provide automotive financing to a committed portion of the non-prime borrowers who purchase and finance a vehicle through Canada Drives platform. The partnership will help goeasy accelerate its plan to become the leading non-bank lender in the $58 billion non-prime Canadian automotive finance market.
Concurrent with the strategic partnership, goeasy will acquire a minority equity interest in Canada Drives, for an aggregate price of $40 million, to be paid in four installments. The investment, which is structured as a convertible note, will convert into preferred shares on defined terms. In connection with its investment, goeasy will receive customary rights as a strategic minority investor, including an Observer seat on the company’s board of directors.
“Expanding our automotive financing program is a key strategic growth initiative,” said Jason Mullins, goeasy’s President and Chief Executive Officer, “We are excited about our partnership and investment in Canada Drives, which will support their mission to be the easiest place to buy or sell a car online in Canada. As online car shopping becomes more common, Canada Drives is well positioned to be the industry leader. They have built an impressive automotive retail platform with an emphasis on exceptional customer experience, while scaling the business to a meaningful level in a short time,” Mr. Mullins continued, “After eight years as an exclusive online lead generation partner that has referred almost 100,000 customers to our easyfinancial brand, we are thrilled to see our relationship expand into a new line of business. Our partnership and investment will help Canada Drives accelerate their growth and allow us to capture an even greater share of the automotive financing market, on our journey to become Canada’s largest non-prime consumer lender.”
“Our partnership and technology integration with goeasy will further enable us to grow our inventory, enhance our platform, and improve our financing programs for Canadian consumers looking to buy and finance their car online,” said Cody Green, Canada Drives’ Founder and Co-Chief Executive Officer, “As goeasy has proven to be a leader in the consumer lending market, they are an ideal business partner with a common vision for a seamless car buying experience. We also welcome goeasy as a strategic investor in our business and look forward to working with them as a long-term partner.”
About goeasy
goeasy Ltd., a Canadian company, headquartered in Mississauga, Ontario, provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by more than 2,300 employees, the Company offers a wide variety of financial products and services including unsecured and secured instalment loans. Customers can transact seamlessly through an omni-channel model that includes an online and mobile platform, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and healthcare verticals, through more than 4,000 merchants across Canada. Throughout the Company’s history, it has acquired and organically served over 1.2 million Canadians and originated over $8.2 billion in loans, with one in three easyfinancial customers graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.
Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards including Waterstone Canada’s Most Admired Corporate Cultures, Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces in North America, Greater Toronto Top Employers Award, the Digital Finance Institute’s Canada’s Top 50 FinTech Companies, ranking on the TSX30 and placing on the Report on Business ranking of Canada’s Top Growing Companies, honoured by The Globe and Mail’s Women Lead Here executive gender diversity benchmark and has been certified as a Great Place to Work®. The company is represented by a diverse group of team members from over 75 nationalities who believe strongly in giving back to the communities in which it operates. To date, goeasy has raised and donated over $4.38 million to support its long-standing partnerships with BGC Canada, Habitat for Humanity and many other local charities.
goeasy Ltd.’s. common shares are listed on the TSX under the trading symbol “GSY”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s. Visit www.goeasy.com.
About Canada Drives
Canada Drives is the largest 100% online car shopping and to-your-door delivery platform available in Canada. Customers can shop for certified used vehicles, pay in full or finance, sign all documents, and have their vehicle delivered to their doorstep as quickly as the same day. Through Canada Drives, purchasing a vehicle online saves Canadians time and money and reduces the stress and pressure often associated with car shopping. Canadians can also sell their vehicle to Canada Drives at a fair price and have the vehicle picked up as soon as the next day. Canada Drives has made it possible to buy, sell, or trade a vehicle with confidence, convenience, and ease.
Forward-Looking Statements
This press release includes forward-looking statements about goeasy and the proposed transactions described herein, including, but not limited to, its business operations, strategy, anticipated relationship with Canada Drives, expected benefits of the strategic partnership with and investment in Canada Drives, expected integration with Canada Drives’ platform, and expected timing of closing. In certain cases, forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘budgeted’, ‘estimates’, ‘forecasts’, ‘targets’ or negative versions thereof and similar expressions, and/or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘might’ or ‘will’ be taken, occur or be achieved.
Forward-looking statements are based on certain factors and assumptions and are inherently subject to, among other things, risks, uncertainties and assumptions. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those expressed or implied by forward-looking statements made by the Company, due to, but not limited to, developments affecting the Company’s and Canada Drives’ operations, economic factors and the industry generally, as well as those factors referred to in the Company’s most recent Annual Information Form and Management’s Discussion and Analysis, as available on www.sedar.com, in the section entitled “Risk Factors”.
The reader is cautioned to consider these, and other factors carefully and not place undue reliance on forward-looking statements, which may not be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless required by law.
For further information contact:
Jason Mullins
President & Chief Executive Officer
(905) 272-2788
Farhan Ali Khan
Senior Vice President, Chief Corporate Development Officer
(905) 272-2788
