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ATLANTA - Atlanticus Holdings Corporation (NASDAQ:ATLC), a $1.03 billion market cap financial services company that has delivered an impressive 118% return over the past year according to InvestingPro, has acquired Mercury Financial LLC in a transaction that adds 1.3 million credit card accounts and $3.2 billion in credit card receivables to its portfolio, the company announced Thursday.
The acquisition expands Atlanticus’ reach into the near-prime consumer segment, with Mercury becoming a wholly-owned subsidiary. The deal increases Atlanticus’ total serviced accounts to over 5 million and managed receivables to more than $6 billion. The company’s strong financial position is evidenced by its healthy current ratio of 14.63, indicating robust liquidity to support this expansion.
Mercury, a data and technology-focused credit card platform that partners with banks to serve near-prime consumers, ranks among the top 25 credit card programs in the U.S.
"We are pleased to add the technology and near prime expertise of Mercury to expand our reach, advance our growth efforts, and leverage the scale that the combined companies create," said Jeff Howard, President and CEO of Atlanticus, in a statement based on the company’s press release.
The transaction involved a cash purchase price of approximately $162 million, with potential future earn-out payments if portfolio credit performance exceeds Atlanticus’ base case assumptions.
Atlanticus expects to create value through portfolio optimization strategies, cost synergies, and increased originations for bank partners. The company also anticipates growth opportunities through new marketing channels and product expansion.
Guggenheim Securities served as financial advisor to Atlanticus, while Deutsche Bank Securities advised the seller. The acquisition was approved by a Special Committee of Mercury’s Board of Directors.
Prior to the acquisition, Mercury facilitated access to more than $6 billion in credit through its technology platform, with offices in Wilmington, Delaware and Austin, Texas. With revenue growth of 26.2% in the last twelve months and trading at a P/E ratio of 11.86, Atlanticus shows strong momentum. For detailed analysis and additional insights, including 12 more exclusive ProTips, visit InvestingPro to access the comprehensive Pro Research Report.
In other recent news, Atlanticus Holdings Corporation has completed a private offering of $400 million in senior notes, which carry a 9.750% interest rate and are due in 2030. The company plans to utilize the proceeds to repay outstanding amounts under its recourse warehouse facilities, fund potential acquisitions, and potentially repay its 6.125% Senior Notes due 2026, along with covering fees related to the offering. These notes are guaranteed by certain domestic subsidiaries and are expected to be issued on August 20, 2025, subject to customary closing conditions. In another development, JMP Securities has raised its price target for Atlanticus Holdings to $78 from $75, maintaining a Market Outperform rating on the stock. This adjustment follows Atlanticus’s strong second-quarter 2025 results, which led JMP to anticipate a faster pace of portfolio growth for the company in the current year and into 2026. These recent developments reflect Atlanticus’s strategic financial maneuvers and positive analyst outlook.
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