UPDATE 1-EZCORP buys Cash Converters’ US stores, franchise rights
EZCORP had ended an agreement with Cash Converters
International Ltd to acquire a controlling stake in the
Perth-based peer following an Australian government move to cap
small credit contract fees.The acquired stores operate the Cash Converters’ buy/sell
model rather than the pawn model used in EZCORP’s other U.S.
stores.The acquired franchise rights include the exclusive right to
develop Cash Converters stores in Virginia, North Florida and
Eastern Pennsylvania, the company said in a statement.The acquisition, which was completed on Oct. 12, also
includes a right to acquire the Cash Converters franchise rights
in the District of Columbia and 17 other states in the East,
South, Midwest and Southwest.EZCORP shares, which closed at $27.65 on Nasdaq on Monday,
were up 3 percent after market.