In a bid to consolidate its existing foothold in UK,
DFC Global Corp.
) acquired Monte Caja Oro, a chain of 27 stores that are located
primarily in the Catalonian and Andalusian regions of Spain.
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The transaction finally cost DFC Global nearly $6 million in
addition to its payment for the pawn pledge inventory's value.
This acquisition is expected to be immediately accretive to
Post the acquisition, DFC Global - an international diversified
financial services company - now has stores in 58 locations in
All these stores of Monte Caja Oro primarily offer gold-buying
services and also pawn lending on gold jewelry. With the new
acquisition, DFC Global is expected to become a leading secured
pawn lender in Europe.
Moreover, DFC Global's current efforts of expanding itself across
Spain, the Czech Republic, Poland and Romania, given the huge
population of these areas and attractive operating
characteristics, are expected to bolster the company's top-line
and bottom-line growth in the upcoming quarters. These continuous
expansions through acquisitions are also giving the company ample
scope to broaden its product suit and widen its geographic
DFC Global has consistently adopted the inorganic route to ramp
up its growth profile. In Jun 2012, DFC Global acquired the
leading pawn loan provider in Romania - Express Credit. With the
acquisition, DFC Global strengthened its pawn lending business on
gold jewelry, highly valuable and small-sized electronics and
automobile along with gold-buying services.
Among others in the credit services industry,
FleetCor Technologies Inc.
) signed an agreement to acquire DB Trans S.A., a leading
Brazilian payment solution provider who caters to independent
truckers in Brazil, in Aug 2013.
There has been no earnings momentum for DFC Global over the last
7 days. With optimism over the latest acquisition, we expect
analysts to raise estimates exerting an upward pressure on the
Zacks Rank. DFC global presently carries a Zacks Rank #3 (Hold).
Better-ranked stocks like
Euronet Worldwide Inc.
), each with a Zacks Rank #1 (Strong Buy), are worth