Enova Plans to Acquire Grasshopper to Gain Digital Banking Infrastructure

Core Viewpoint - Enova International plans to acquire Grasshopper Bancorp and its subsidiary Grasshopper Bank to enhance its financial services offerings and create a more diversified provider in the financial sector [1][2]. Group 1: Transaction Details - The acquisition is valued at $369 million and aims to merge Enova's online lending capabilities with Grasshopper's digital banking infrastructure [2]. - The transaction is subject to shareholder and regulatory approvals and is expected to close in the second half of 2026 [3]. Group 2: Leadership Changes - Post-acquisition, Enova will become a newly formed bank holding company, with Grasshopper Bank as its subsidiary [4]. - Mike Butler, the current CEO of Grasshopper, will become president of Grasshopper Bank, while Steve Cunningham, currently CFO of Enova, will take over as CEO of Grasshopper Bank [4]. Group 3: Business Growth and Performance - Enova reported a 22% year-on-year increase in loan originations for Q3, totaling approximately $2 billion, and a 16% increase in consolidated revenue to $803 million [5]. - The company emphasized strong loan growth and credit metrics, supported by its online-only business model [6]. - Grasshopper recently completed a $46.6 million funding round to support its merger with Auto Club Trust and expand its banking solutions [6].