Atlanticus Holdings Corporation has acquired Mercury Financial LLC, a leading data- and tech-centric credit card platform that serves near-prime consumers through bank partnerships. This strategic move positions Mercury as a wholly-owned subsidiary of Atlanticus, enhancing its suite of credit programs and extending its expertise in credit management and technology to new markets. The acquisition bolsters Atlanticus' capabilities in inclusive financial services, aligning with its mission to empower everyday Americans through innovative lending solutions.
Atlanticus Holdings Corporation announced the acquisition of Mercury Financial LLC, integrating it as a wholly-owned subsidiary. Mercury specializes in providing credit cards to near-prime consumers through bank partners, leveraging advanced data and technology. This addition expands Atlanticus' portfolio to include Mercury's branded and co-branded programs, complementing its existing offerings in general purpose credit cards, retail credit, patient financing, and dealer solutions. An accompanying transaction presentation is available in the Investors section of Atlanticus' website at www.atlanticus.com.
The transaction immediately scales Atlanticus' operations, adding 1.3 million credit card accounts serviced and $3.2 billion in credit card receivables. This brings the company's total serviced accounts to over 5 million and managed receivables to over $6 billion, facilitating the application of Atlanticus' industry-leading credit expertise and program management to a broader partner network.
Jeff Howard, President and Chief Executive Officer of Atlanticus, commented, “First and foremost, let me welcome the Mercury team members to the Atlanticus family. Through your investment in technology and rigorous focus on data and analytics, you have built an impressive platform and we are excited to have you as part of our ongoing growth plans.
“We are pleased to add the technology and near prime expertise of Mercury to expand our reach, advance our growth efforts, and leverage the scale that the combined companies create to bring a best-in-class product offering at the lowest possible cost to an even broader consumer segment.
“Having purchased over $6 billion in credit card receivables portfolios throughout our history, we are highly confident in our ability to create value through the optimization of the $3.2 billion credit card receivables portfolio that has been managed by Mercury. We are equally excited about the incremental growth we can achieve through additional marketing channels, partners, and expanded product offerings that the Mercury platform enables.”
Howard's remarks emphasize the synergies in technology and analytics that will drive value creation.
The deal involves a cash purchase price of approximately $162 million, with potential future earn-out payments if Mercury's portfolio credit performance exceeds Atlanticus' base case assumptions. Post-acquisition integration initiatives are projected to generate significant value through portfolio optimization strategies, cost synergies, and heightened originations for bank partners. Growth potential includes enhanced customer acquisition via new marketing channels and product expansions across Mercury's and Atlanticus' markets.
Guggenheim Securities, LLC served as financial advisor and Troutman Pepper Locke and Willkie Farr & Gallagher served as legal counsel to Atlanticus in this transaction. Deutsche Bank Securities served as financial advisor to the seller and Mayer Brown LLP served as legal counsel to the special committee of the board of the seller in this transaction. Colin M. Adams of Uzzi & Lall served as a Special Committee of Mercury's Board of Directors, which approved the transaction.
The acquisition of Mercury Financial strengthens Atlanticus Holdings' position in the financial services sector, particularly in serving near-prime consumers with inclusive credit solutions. By combining Mercury's tech-centric platform with Atlanticus' established infrastructure, the company is poised for accelerated growth, improved operational efficiencies, and expanded market reach, ultimately benefiting bank partners and everyday Americans seeking accessible financial products.
Empowering Better Financial Outcomes for Everyday Americans
Atlanticus™ technology enables bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary technology and analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and $44 billion in consumer loans over more than 25 years of operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare point-of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our Auto Finance subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.
Mercury Financial LLC is a financial services company on a mission to expand financial inclusion, helping more than 1.3 million Americans build a stronger financial future and improve their credit. Founded in 2017 and backed by advanced technology, Mercury has facilitated access to more than $6 billion in credit. Mercury enables credit card products issued by First Bank & Trust, Brookings, SD, pursuant to a license from Visa® USA Incorporated. Mercury has office locations in Wilmington, DE and Austin, TX.
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