NextPoint Acquisition Corp. completed the acquisition of the tax preparation franchisor Liberty Tax from its parent company, Franchise Group Inc. of Orlando, Florida.
Franchise Group received some $ 182 million in cash and some $ 67 million in shares of NextPoint, a special purpose acquisition company based in British Columbia. The money was used to pay off outstanding debt, Franchise Group said.
The deal was originally announced in February.
Analysts said NextPoint plans to combine tax preparation with loans. The integration of Liberty Tax and LoanMe, which the company also recently acquired, has begun, with loans available at many of the company’s stores and franchise stores, said Brent Turner, CEO of NextPoint Financial.
“We have a significant interest from our network of approximately 1,300 franchisees to accelerate the deployment of loan products and this will be complemented by an expanded offering which will include prime loans, mortgages, insurance products, of books and other ancillary services, ”Turner said. added, in a press release.
Franchise Group Inc. took control of Liberty Tax in Virginia Beach, Va., In 2018, after the company’s founder and former CEO, John Hewitt, was fired and forced to sell its control actions.
In a statement, Franchise Group President and CEO Brian Kahn said, “I would like to thank all Liberty associates and franchisees for their positive impact on Franchise Group. We look forward to becoming a significant shareholder of NextPoint and remain optimistic that as an independent public company, NextPoint can accelerate its plan to scale a diverse financial services platform throughout the year. ‘year.
Media have stated that LoanMe is a California-based lender that is known to issue high interest loans and have regulatory issues in the past.