Acquisitions

12 Months Ended

Dec. 31, 2020

ACQUISITIONS

2020 Acquisitions

Consistent with the Company’s strategy to continue its expansion of pawn stores in selected markets, during 2020, the Company acquired 40 pawn stores in Mexico in two separate transactions and 22 pawn stores in the U.S. in two separate transactions. The aggregate purchase price for these acquisitions totaled $43.6 million, net of cash acquired and subject to future post-closing adjustments. The aggregate purchase price was composed of $41.4 million in cash paid during 2020 and remaining short-term amounts payable to the sellers of approximately $2.2 million. During 2020, the Company also paid $2.9 million of purchase price amounts payable related to prior-year acquisitions.

The purchase price of each of the 2020 acquisitions was allocated to assets acquired and liabilities assumed based upon the estimated fair market values at the date of acquisition. The excess purchase price over the estimated fair market value of the net assets acquired has been recorded as goodwill. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. These acquisitions were not material individually or in the aggregate to the Company’s consolidated financial statements.

The estimated fair value of the assets acquired and liabilities assumed are preliminary, as the Company is gathering information to finalize the valuation of these assets and liabilities. The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during 2020 is as follows (in thousands):


Pawn loans	$	5,839
Pawn loan fees receivable	644

Inventories	3,594
Other current assets	154
Property and equipment	241
Goodwill (1)	33,434
Intangible assets	190
Other non-current assets	40
Current liabilities	(547)


Aggregate purchase price	$	43,589

(1)Goodwill associated with the U.S. operations segment and the Latin America operations segment was $29.0 million and $4.5 million, respectively. Substantially all of the goodwill is expected to be deductible for respective U.S. and Mexico income tax purposes.

The results of operations for the acquired stores have been consolidated since the respective acquisition dates. During 2020, revenue from the acquired stores was $7.5 million and the earnings from the combined acquisitions since the acquisition dates (including $1.0 million of transaction and integration costs, net of tax) was approximately $0.3 million.

Historical pre-acquisition financial statements of the two separate Mexico acquisitions were created in local country GAAP and the Company did not obtain pre-acquisition financial statements prepared in accordance with U.S. GAAP. As a result, and due to the insignificance of the acquisitions, it is impractical for the Company to adequately present supplemental pro forma information.

2019 Acquisitions

During 2019, the Company acquired 163 pawn stores in Mexico in 13 separate transactions and 27 pawn stores in the U.S. in nine separate transactions. The aggregate purchase price for these acquisitions totaled $46.8 million, net of cash acquired. The aggregate purchase price was composed of $44.9 million in cash paid during 2019 and remaining short-term amounts payable to the sellers of approximately $1.9 million.