AFICO is pleased to announce that Money 3 Corporation Limited ACN 117 296 143 (ASX: MNY) (Money3) has completed the purchase of Automotive Financial Services Pty Limited ACN 003 622 375 (AFS) and is now officially the owner of the asset finance lending business. The purchase of AFS for $10.8 million secures Money3 $48.9 million in gross loan book value and expands the addressable market in which the company operates.

Last month, Money3 entered a binding agreement with AFICO Pty Ltd to purchase AFS for $10.8 million in a cash/script deal comprising a cash settlement of $3.24 million and the issue of 2.88 million ordinary shares of MNY to AFICO.

With the acquisition of AFS, Money3 Corporation Ltd aims to boost its product offering in Australia and accelerate its growth in the new, used and commercial vehicle finance segment.

The acquisition aligns with Money3's strategy of financing a broader market and extending the company's product offering.

Money3 says the purchase adds $48.9 million in gross loan book value as of January 1, 2021. It is expected the purchase will improve the 2022 financial year earnings by $2 million in net profit after tax.

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

"The completion of the AFS acquisition significantly expands the Company’s core product offering to address a wide group of customers looking to finance a new, used, or commercial vehicle. The acquisition increases the Company’s market share to approximately 4% of the $6bn annual used vehicle finance market.”

“The company has experienced strong demand for vehicle finance during the first half of FY21 with record new loan originations in November 2020 and the strongest half-year result the company has ever produced," he said.

"The acquisition of AFS further strengthens the company and expands the addressable market in which the company operates, enabling us to continue to increase our market share further in 2021," he added.

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 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.

Transaction Highlights:

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
Money3 Completes AFS Acquisition | MNY

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