AFICO is pleased to announce that on 3^rd December 2020 the Board entered into a binding agreement to sell Automotive Financial Services Pty Limited ACN 003 622 375 (AFS) to Money3 Corporation Limited ACN 117 296 143 (Money3).

AFS is a licensed credit provider that specialises in the provision of secured credit for motor vehicles, light commercials and other mobile assets to consumers, businesses and self-employed individuals.

Founded in 1988, AFS is a secure and trustworthy alternative to the banks for consumers and businesses when it comes to asset finance.

AFS’ loan book totalled $51.2m as at 30th September 2020, with an average loan of $11.9k across the c.4,269 obligors.

AFS has a well-developed receivables funding program in place through Westpac (Senior Noteholder) & the Australian Office of Financial Management (AOFM-SFSF)

Loans are originated through a network of finance brokers, aggregators and car dealerships, supported by an online, direct to customer capability for repeat business.

Specialising in vehicle loans up to $100,000 with competitive interest rates, AFS extends Money3’s product offering along the credit quality curve.

Following the significant announcement (refer 23 November) of Money3 securing a $250m warehouse securitisation facility from a globally recognised A+ rated bank, AFS brings funding from a large Australian bank, further diversifying funding lines.

Highlights include:

Money3's MD and CEO, Scott Baldwin, said:

“AFS is a very good business with over 30 years of history of providing loans to consumers. It’s product set complements Money3’s existing products nicely and helps broaden the Group’s addressable market."

“AFS has spent considerable time establishing a S&P rated loan book funded by a large Australian bank that will remain in place after acquisition. While the Company is able to bring funding to AFS to allow for expansion of the loan book, AFS will also benefit from being part of a bigger group with like minded individuals."

“I am delighted Brad and Brian are continuing with the Company and that they are excited about working toward Money3’s medium term goal of 100,000 customers and a $1B loan book.”

AFS' Executive Director, Brad Dale said:

“We are extremely pleased to announce that AFS will be joining the Money 3 Group. We believe there is a good cultural fit and strong alignment in strategy. By leveraging off our respective strengths we plan to build a real force in the asset finance market and deliver superior growth for shareholders in the years ahead.”

AFS' Managing Director, Brian Anderson commented:

"AFS is steadfast in our commitment to the Automotive and Asset Finance Industry. The Money 3 acquisition is an alignment of common goals, likeminded values + mutual growth mindset."

"It will be the basis for an exciting period for our business – we will continue to invest in our process and infra-structure, to ensure efficient delivery of our next generation products and services to drive peak performance.”

About Money3 Corporation Limited (ASX: MNY)

Money3 is a specialist provider of consumer finance for the purchase or maintenance of a vehicle. Our business model and unique approach to customer care attracts creditworthy customers that are underserviced by traditional lenders. Money3 has a fast growing and high-quality loan book with more than 50,000 active accounts.

Announcement
Automotive Acquisition into Near Prime Market Segment | MNY

Read
Show me the MNY! Brokers cross investors for Money3 deal | Australian Financial Review

Money3 (ASX:MNY) eyes Automotive Financial Services buy, enters trading halt | The Market Herald

Money3 Enters into Binding Agreement to Acquire AFS | Morningstar

Money3 muscles up in auto finance | Banking Day