FRG - Franchise Group's Liberty Tax Service to be a part of NextPoint Acquisition
Franchise Group ([[FRG]] +2.4%) announces that its Liberty Tax business will become part of NextPoint Acquisition diversified financial services platform.Franchise Group expects to receive consideration of at least $243M, consisting of $182M in cash and at least $61M in stock consideration, representing significant ownership in NextPoint.Transaction closure is subject to closing of NextPoint’s acquisition of LoanMe, expected in Q2 2021.For fiscal year 2020, Franchise Group expects to report approximately $123M in revenue and $37M of Adjusted EBITDA for its Liberty Tax segment.Brian Kahn, President & CEO said, “The NextPoint transaction is consistent with our stated strategy of evolving Liberty’s approximately 2,700 offices from a seasonal tax business into a year-round diversified consumer financial products and services franchise. We believe the NextPoint transaction accelerates that strategy and provides a value creation opportunity for our stakeholders. We are excited to enable an experienced sponsor and our Liberty management team to singularly focus on enhancing this platform through a well-capitalized,
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Franchise Group's Liberty Tax Service to be a part of NextPoint Acquisition