PayBright sold to Affirm
TORONTO – PayBright, one of this country’s better known ‘buy now, pay later’ providers, has been acquired by Affirm, an American credit provider, for cash and equity considerations valued at approximately C$340 million.
PayBright provides a variety of point-of-sale consumer financing solutions to customers of a wide range of both brick-and-mortar as well as digital furniture, mattress and major appliance retailers. Among its roster of 7,000 retailers across the country are Endy, Sleep Country, Wayfair.ca. Tuft & Needle Canada, Article, Mobilia and Coast Appliances.
The terms of the deal were not disclosed, but it is expected to close sometime during the first quarter of next year.
In a statement, the San Francisco, California-based Affirm said uniting with PayBright will create a company with complementary merchant relationships, deeply aligned cultural values and create a payment solutions platform with expanded scale and reach. Together, Affirm and PayBright will have a larger and more diverse merchant network across the United States and Canada.
“We are excited to combine with PayBright, creating the opportunity to expand our footprint across North America and scale our platform,” Affirm founder and chief executive officer Max Levchin said. “PayBright shares Affirm’s goal of improving the payments experience for consumers and merchants alike, and PayBright’s base of merchants complements our own customer network. We look forward to welcoming their talented team to the Affirm family.”
“We built PayBright with the mission of making the everyday commerce experience simply better for Canadians,” PayBright president and CEO Wayne Pommen added. “Partnering with Affirm gives us the opportunity to deliver on that promise on a much larger scale. Affirm’s network, focus on trust and transparency, and industry-leading technology make it the ideal partner for PayBright. As part of a larger, multinational organization, we can help even more merchants attract new customers and provide a greater number of consumers with more control and flexibility in their purchasing decisions. We are delighted to be joining forces with Affirm and taking ‘buy now, pay later’ to the next level in Canada.”
Built upon core principles of simplicity, transparency, and putting people first, Affirm said its mission is to deliver honest financial products that improve lives. Since its founding in 2012, Affirm has charged $0 in late fees for missed payments. Affirm’s payment solution empowers consumers to select how they wish to pay – including biweekly and monthly payment options – on a per-transaction basis. The company’s business model is aligned with the interests of both consumers and merchants, leveraging a data-driven approach to inform risk assessment that results in empowering consumers and generating value for merchants.
GoEasy sells stake
As part of deal, GoEasy – the Mississauga-based parent of lease-to-own merchant EasyHome – announced it would sell its minority stake in PayBright, which it acquired in September 2019 for $34.3 million, to Affirm.
Under the terms of the sale transaction, GoEasy will receive a mixture of cash and equity valued at up to $60.1 million. As of September 30, 2020, the company’s equity interest in PayBright was valued at $40 million.
“This transaction will deliver an attractive return on our equity investment and significant value for goeasy shareholders,” said Jason Mullins, GoEasy president and CEO. “We look forward to continuing our commercial partnership with Affirm, who is regarded as one of North America’s most innovative and consumer focused buy-now-pay-later platforms. Together, we will continue to offer a frictionless full credit spectrum point-of-sale payments solution.”