Enova International (ENVA) To Acquire OnDeck (ONDK) for $90M - Slideshow

Acquisition Overview - Enova is acquiring OnDeck through a fixed exchange ratio of 0092 shares and $012 in cash for each OnDeck share[9] - The deal values each OnDeck share at $138, based on Enova's closing share price of $1370 on July 27, 2020, resulting in a total transaction value of $90 million[9] - Post-acquisition, Enova shareholders will own approximately 833% and OnDeck shareholders will own 167% of the combined company[9] Strategic Rationale - The combined company had $47 billion in combined originations in 2019 and has served approximately 7 million customers[7] - The acquisition is expected to be accretive in the first year post-closing and generate earnings per share accretion of more than 40% when synergies are fully realized by year-end 2022[7, 10, 18] - The combined company is expected to have a pro forma Debt to Equity ratio of 45x, a Pro Forma ROE of 520%, and an Adjusted EBITDA Margin of 259%[7] Synergies and Financial Impact - The deal anticipates approximately $50 million in annual cost synergies fully phased-in by year-end 2022[9, 18] - Run-rate net revenue synergies of $15 million are expected when fully phased-in by year-end 2022[9, 18] - Enova's 1Q 2020 revenue was $24 billion, and the pro forma revenue is $12 billion, representing a 109% increase[13] - Enova's 2019 Adjusted EBITDA was $276 million, and the pro forma Adjusted EBITDA is $427 million, representing a 55% increase[14]