Payday lender Cash America International Inc. is evaluating a plan to separate its online lending business that comprises its e-commerce division, Enova International Inc., to focus on its storefront lending operations that include pawn shops. A spinoff would create a stand-alone, publicly traded online lending company with approximately $766 million in annual revenue as of Dec. 31, 2013.
If a spinoff were to occur, Cash America would operate the storefront lending businesses, while Enova would own and operate the online lending business with operations in the United States, the United Kingdom, Australia and Canada. David Fisher, who has been Enova’s CEO since January 2013, would continue to serve in that role if the spinoff were to occur. As a result of a spinoff, Cash America President and CEO Daniel R. Feehan said in a news statement, “A separation is expected to better position Cash America and Enova to pursue strategies that best fit their specific businesses.”
The Fort Worth-based company said its management is expected to make a final recommendation to the board later this year with a transaction likely to be completed in late 2014 or early 2015. As of Dec. 31, 2013, Cash America International operated 1,006 total locations, including 869 lending locations in 22 states in the U.S.; 47 pawn lending locations in central and southern Mexico; and 90 check cashing centers operating in 13 states in the U.S. Additionally, the company offered consumers loans over the Internet to customers in 32 states, the U.K., Australia and Canada. – Betty Dillard