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Elevate Credit, Inc., a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, on Wednesday announced it had agreed to a sale to an affiliate of Park Cities Asset Management LLC (“Park Cities”), an alternative asset manager focused on providing flexible debt solutions.
According to a press release, Park Cities will acquire Elevate for $1.87 per share in an all-cash transaction at an implied value of $67 million. Pursuant to the terms of the merger agreement, 7% of shares and shares underlying equity awards held by certain members of Elevate management are permitted to rollover into equity of the acquiring entity.
The transaction, which was approved by the Elevate board of directors by the unanimous vote of those voting, is expected to close in the first quarter of 2023, subject to customary closing conditions, including approval by Elevate shareholders and receipt of regulatory approvals. Upon completion of the transaction, Elevate’s shares will no longer trade on the New York Stock Exchange and Elevate will become a private company.
The company will continue to operate under the Elevate name and brand. Park Cities officials said the firm intends to maintain Elevate’s headquarters in Fort Worth.
“From the beginning, Elevate has strived to be the most trusted and preferred alternative credit provider for the ‘New Middle Class’ — the more than 100 million credit constrained Americans,” said Jason Harvison, Elevate CEO. “I am excited to build on our partnership with Park Cities and continue our work as a leader and innovator in the non-prime market. I look forward to working with the Park Cities leadership team and believe the Company will greatly benefit from their expertise and comprehensive understanding of the credit landscape.”
Founded in 2014, Elevate has reinvented non-prime credit with online solutions that provide financial relief today, and help people build a brighter financial future. The company, along with the banks that license its technology, has originated more than $10 billion in credit to nearly 3 million non-prime consumers.
“Elevate fills a massive void in the lending market, both through its suite of credit solutions and its powerful AI-driven technology platform,” said Alex Dunev, Park Cities managing partner. “I am confident that we can help advance the company’s vision while it maintains its commitment to serving the non-prime consumer.”
Park Cities brings decades of experience in consumer and commercial lending, extensive corporate finance acumen and significant operating experience that will allow Elevate to continue to serve credit-constrained Americans. Park Cities has a long relationship with Elevate and currently provides corporate debt as well as financing for the Today Card product.
Morgan Stanley & Co. LLC is serving as financial advisor to Elevate, and Morrison & Foerster LLP is acting as legal counsel. Haynes and Boone LLP, Wick Phillips Gould & Martin LLP, and Husch Blackwell LLP are acting as legal counsel for Park Cities.