QC Holdings to be Acquired for $115 Million in All-Cash Deal
Deal News | Apr 11, 2025 | Globenewswire
QC Holdings, Inc., a provider of alternative financial services, is set to be acquired by Prospect Capital Corporation for an enterprise value of approximately $115 million. The all-cash transaction, valued at $2.00 per share, has been approved by QC Holdings' board and the major holders of its outstanding shares, with no further shareholder approval necessary. The closing of the transaction is contingent on regulatory approvals and is anticipated within 40 to 60 days. Post-acquisition, QC Holdings will remain headquartered in Lenexa, Kansas, with its existing management team under CEO Darrin Andersen continuing in their roles. The merger aims to leverage Prospect's capital for QC's growth and innovation, enhancing value for its customers. Prospect and QC Holdings had legal representation from Blank Rome LLP and Stinson LLP, respectively. QC Holdings operates LendNation, focusing on consumer credit solutions across numerous retail locations in the U.S. and Canada, while Prospect focuses on investing in private businesses to generate income and capital appreciation.
Sectors
- Financial Services
- Investment Management
Geography
- United States – QC Holdings operates over 325 retail locations in 12 states, and Prospect Capital Corporation is headquartered in New York.
- Canada – QC Holdings offers financial services through 19 retail locations and online, highlighting its presence in the Canadian market.
Industry
- Financial Services – QC Holdings operates in the financial services industry, providing alternative credit options and short-term loans, addressing consumers underserved by traditional banks.
- Investment Management – Prospect Capital Corporation is involved in investment management, focusing on lending to and investing in private companies to generate income and capital appreciation.
Financials
- $115 million – Total enterprise value of the merger agreement for the acquisition of QC Holdings by Prospect Capital Corporation.
- $2.00 per share – The price per share offered in the all-cash transaction for QC Holdings stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| QC Holdings, Inc. | Target | Company | A provider of consumer-focused alternative financial services and credit solutions in the U.S. and Canada. |
| Prospect Capital Corporation | Bidding Company | Company | An investment company focused on lending to and investing in private businesses to generate income and capital appreciation. |
| Darrin Andersen | President and CEO | Person | The current President and CEO of QC Holdings, who will continue in his role post-Merger. |
| Grier Eliasek | President and COO | Person | President and Chief Operating Officer of Prospect Capital Corporation. |
| Blank Rome LLP | Legal Advisor to Prospect | Company | Provided legal services to Prospect Capital Corporation for the merger. |
| Stinson LLP | Legal Advisor to QC Holdings | Company | Provided legal services to QC Holdings for the merger. |