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SALT LAKE CITY - PROG Holdings, Inc. (NYSE:PRG) has sold its Vive Financial credit card receivables portfolio to Atlanticus Holdings Corporation (NASDAQ:ATLC) for approximately $150 million in cash, the company announced Wednesday. According to InvestingPro data, Atlanticus maintains a strong financial position with a current ratio of 14.63, indicating robust liquidity to support such acquisitions.
The transaction involves Atlanticus acquiring approximately $165 million in credit card receivables from PROG Holdings, a fintech holding company for Progressive Leasing, Four Technologies, and Build.
According to the press release statement, the deal is expected to improve PROG Holdings’ capital efficiency and profitability profile while maintaining access to second-look credit solutions for near and below-prime consumers.
"Today’s announcement reflects our continuing commitment to optimize capital returns while providing wide-ranging, best-in-class flexible payment options to underserved consumers," said Steve Michaels, PROG Holdings’ President and Chief Executive Officer.
Following the completion of the transition services agreement, Vive Financial will cease loan servicing activities. Both companies stated they will work together to ensure a smooth transition process for customers and retail partners. Atlanticus brings strong operational expertise to this transition, maintaining an impressive gross profit margin of 71.5% in its existing operations.
Jeff Howard, President and Chief Executive of Atlanticus, noted that the acquisition would help his company "deepen and add numerous retail partner relationships" while establishing a partnership with PROG Holdings.
PROG Holdings indicated it will provide additional information about the financial impact of the transaction during its upcoming third quarter earnings call.
The companies described the deal as the beginning of a partnership, with potential collaboration on new opportunities in the future.
In other recent news, Atlanticus Holdings Corporation has completed its acquisition of Mercury Financial, adding 1.3 million credit card accounts and $3.2 billion in credit card receivables to its portfolio. This transaction marks Atlanticus’s first acquisition in nearly two decades and expands its reach into the near-prime consumer segment. With this acquisition, Atlanticus’s total serviced accounts now exceed 5 million, and its managed receivables surpass $6 billion. Following the acquisition, JMP Securities raised its price target for Atlanticus to $95, maintaining a Market Outperform rating, while BTIG increased its price target to $105, citing a 32% rise in its 2027 earnings per share estimate.
BTIG’s revised EPS estimate of $15.94 is at the high end of Atlanticus’s guidance for $2-$4 accretion from the Mercury Finance acquisition. Meanwhile, AlphaTON Capital Corp announced a non-binding letter of intent to explore tokenizing its mesothelioma treatment program, integrating blockchain technology with its cancer therapeutics. This initiative is part of AlphaTON’s strategy to merge its TON ecosystem operations with its oncology subsidiary, Cyncado Therapeutics.
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