Lattitude is acquiring humm's consumer business, which includes BNPL, Instalments and Cards. The transaction is expected to be fully realised by the end of 2023, following the full integration.
The business has acquired humm’s consumer business for $150 million n shares and $35 million cash – representing $335 million in total consideration.
According to Lattitude, the business expects to generate $55 million of annual synergies from duplicate costs, technology rationalisation and funding benefits.
“The acquisition of Humm’s consumer business is a great outcome for both Latitude and Humm shareholders,” said Ahmed Faour, the CEO and Managing Director of Lattitude.
“The transaction will deliver significant synergies and shareholder value, cementing our position as the leading instalments and consumer lending business in Australia and New Zealand and accelerate our international expansion. Humm’s consumer business is a great fit for Latitude given Humm’s capability in big and small ticket BNPL and its merchant base, providing additional scale to Latitude at minimal marginal cost.”
The current CEO of humm, Rebecca James, will be invited to lead the combined group’s BNPL business. In conjunction with this offer, Lattitude will invite two humm independant directors to join the Lattitude Board.
humm currently houses more than 2.6 million customers and has relationships with roughly 60,000 merchants in ANZ. As part of this acquisition, the business will accelerate its BNPL strategy to acquire a larger customer base.
Furthermore, this move will enable Latitude to consolidate five receivable platforms into two, including consolidating Latitude’s BNPL business sunder humm’s brand and SFQ2 Cloud Lending; a platform used by Latitude’s lending business, recently acquired through the purchase of Symple Loans.
humm has committed to undertake a pro-rata in species distribution of the Latitude script issued to its approximately 18,000 shareholders as part of the consideration of the transaction, subject to an ATO ruling and humm shareholder approval.
“This is a transformational transaction for Humm group,” shared Christine Christian AO, humm Chairman. “The combination of Humm Consumer and Latitude will create a leading pure-play consumer finance business, a significant and profitable company able to compete at scale and build on Humm Consumer’s track record of building award-winning products and experiences that customers love.
“This will create an even more compelling proposition for merchants, retailers and customers. The combined business will create significant value, both for Humm shareholders who receive Latitude shares and existing Latitude investors, and we look forward to working with Latitude to complete the transaction,” they continued.
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