EZCORP Expands into Mexican Market through Auto Pawn Acquisition

By Tamara Parker • Thursday, September 12 08:07 • Permanent Link

EZCORP, Inc. (NASDAQ:EZPW) has recently announced its agreement to acquire 53 pawn stores in Mexico from Présta Dinero, S.A. de C.V., also known as "Auto Dinero." This acquisition represents a significant expansion for EZCORP in the Mexican market, with Auto Dinero currently operating across 21 states in Mexico and specializing in auto (vehicle) pawn and title pawn transactions.

The purchase agreement, finalized on September 10, 2024, is expected to close on or before October 31, 2024, subject to customary closing conditions. EZCORP's CEO, Lachie Given, expressed excitement about the expansion, citing the growing auto pawn segment in Mexico and the rise in vehicle ownership in the region.

With this acquisition, EZCORP aims to diversify its product suite within the pawn industry, leveraging higher-value collateral and attracting a new customer demographic. The move also integrates a strong local brand into EZCORP's portfolio and brings Jorge Hernandez, the founder of Auto Dinero, into EZCORP's leadership team.

EZCORP, formed in 1989, has positioned itself as a leading provider of pawn transactions in the United States and Latin America. The company also engages in the sale of pre-owned and recycled merchandise, primarily from pawn lending operations and customer purchases.

As of the latest financial report, EZCORP's stock is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and NASDAQ Composite Index. The acquisition of Auto Dinero further solidifies EZCORP's presence in the pawn industry, emphasizing its commitment to addressing the short-term cash needs of consumers while delivering an industry-leading customer experience. As a result of these announcements, the company's shares have moved -2.0% on the market, and are now trading at a price of $10.88. For more information, read the company's full 8-K submission here.

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