- Money3 Corporation (MNY) is now officially the owner of Automotive Financial Services (AFS)
- In December, Money3 entered a binding agreement to purchase AFS for $10.8 million
- AFS is a lending business which specialises in vehicle loans of up to $100,000
- It is expected the purchase will improve the company’s 2022 financial year earnings by $2 million in net profit after tax
- On the market today, Money3 is down 0.35 per cent and is trading at $2.85 per share
Money3 Corporation (MNY) is now officially the owner of Automotive Financial Services (AFS).
Last month, Money3 entered a binding agreement to purchase AFS for $10.8 million. The new addition will extend Money3’s product offering in Australia.
AFS is a lending business which specialises in vehicle loans of up to $100,000.
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.
Managing Director and CEO Scott Baldwin said the transaction increases the company’s market share to approximately 4 per cent of the $6 billion 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.
On the market today, Money3 is down 0.35 per cent and is trading at $2.85 per share at 12:49 pm AEDT.