Finance Breaking news Enova to buy OnDeck for $90m last financial news
Breaking-Finance.Com - OnDeck, the online lender to small businesses, is being acquired by rival Enova in a cash and stock deal worth around $90 million.
Breaking-Finance.Com - OnDeck, the online lender to small businesses, is being acquired by rival Enova in a cash and stock deal worth around $90 million. The $90 million - $8 million of which will be in cash - is a 90% premium on OnDeck's closing price on Monday. Founded in 2006, OnDeck was a pioneer of the alternative lending market, using data analytics and digital technology to make real-time lending decisions. The firm went public in 2014 and joined the unicorn club.However, it has struggled in recent times.
. The US bank has brought processing inhouse to offer similar services from its own platform, a decision which sent shares in OnDeck tumbling. The company posted a $59 million loss in the first quarter of 2020 and has been further hit by the economic fallout from the Covid-19 pandemic.Noah Breslow, CEO, OnDeck, says: "Following an extensive review of our strategic options, we believe this is the right path forward for our customers, employees and shareholders. "Joining forces with Enova, a highly-respected and well-capitalized leader in online lending, and leveraging our combined scale and strengths, provides the best opportunity for our long-term success."
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