Sale proceeds will fund the ongoing growth of the company's automotive loans business.
The balance of the sale proceeds, expected to be $10 million-$11 million, is due in six equal monthly instalments following completion.
“We are very excited about our position in the market”
Money3 managing director Scott Baldwin said he was delighted to have completed the sale of the Branch and Online SAAC lending businesses.
“This sale, together with our recent acquisition of the New Zealand-based business, Go Car Finance, are significant milestones on the strategic path of the company being a leading automotive credit provider in Australia and New Zealand.
“We are very excited about our position in the market and the availability of considerable funds to continue the strong growth of the automotive loan book both domestically and in New Zealand.
“Well positioned for growth”
“Our domestic auto lending business together with the contribution from the Go Car Finance business will largely bridge the earnings gap from the divestment of the SAAC business.”
Baldwin added: “Importantly, we are now well positioned for growth and have a clear focus on automotive lending.”
The company maintains its guidance for financial year 2019 net profit after tax of $35 million.
One-off costs associated with this transaction, coupled with the associated non-cash intangible adjustments, will be reflected in the financial year 2019 results.