Credito Real Partners With Resuelve Acquiring 55.21% of its Holding Company
MEXICO CITY, Dec. 15, 2015 /PRNewswire/ -- Crédito Real, S.A.B de C.V., SOFOM, E.R. ("Crédito Real") informs it partnered with and acquired 55.21% of the equity interests issued by CAT 60, S.A.P.I. de C.V., holding company of Resuelve ("Resuelve"), This acquisition fosters Crédito Real's business diversification.
Resuelve started operations in 2009 and currently has several lines of business, being the main one "Resuelve Tu Deuda" (RTD), which offers services to repair individuals' credit standing by aiming to establish a saving program and restructuring customer's debt with its creditors. RTD has served over 80,000 customers in Mexico and manages about Ps. 3,000 million in debt, without participating in customers' credit risk. In 2014 as part of a strategy to expand the business, Resuelve started operations in Colombia in addition to launching new lines of business, such as a product to manage the accounting of small businesses through an innovative IT platform ("Resuelve Tu Contabilidad"), among other recurrent-fee products that will spur growth through cross-selling in the following years. Resuelve currently has 35,000 active customers among all its business lines; it also has 736 employees and a 21 branches network. Additionally, Resuelve is a pioneer on digital channels' lead generation and lead management for financial services through a proprietary platform (FinTech), becoming one of the main partners/customers for Google and Facebook in the financial services division in Mexico.
With this transaction Crédito Real will diversify its business portfolio by including a fee business model, in which it receives recurrent fees for financial services provided. The Resuelve acquisition will bring short and long term benefits to Crédito Real's platform: accessing a potential customer base for small business loans, getting access to new customers that successfully went over the RTD program. Finally, Crédito Real will improve its understanding of the full credit cycle, by including bad-loan workout processes.
As a result of the acquisition, Crédito Real will consolidate Resuelve's results in its financial statements beginning on December 2015. The aggregate consideration payable for this transaction assumes a value of Ps. 266 million and equals a P/E multiple of 9.5 times 2016 estimated earnings.
After the deal, Resuelve's management team and founders will keep running the business remaining with a 44.79% minority stake; confirming their commitment to expand geographically and keep expanding their lines of businesses. As in similar transactions, Crédito Real and Resuelve's management will define a business plan together establishing incentives for achieving growth and profitability objectives in the following years.
Consistently, Crédito Real's business model continues to support loan portfolio expansion and diversification while keeping our focus on customers traditionally underserved by other financial institutions.
About Crédito Real
Crédito Real is a financial institution in Mexico focused on consumer lending with a diversified business platform in five main lines of business: payroll loans, durable goods loans, small business loans, group loans and used car loans. Crédito Real offers its products mainly to the low and middle-income segments of the population that have historically been underserved by other financial institutions. Crédito Real shares are listed on the Mexican Stock Exchange under the ticker symbol and Series "CREAL*". (Bloomberg: CREAL* MM)
SOURCE Credito Real
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