Ezcorp to buy Value Financial Services

Ezcorp said the purchase will make it the biggest pawnshop operator in Florida.

The company said the purchase price includes $73 million paid to Value Financial shareholders, the assumption of about $35 million in debt and about $1.4 million in transaction costs.

The deal also provides for a a $3.3 million benefit of a net operating loss carry-forward, which Ezcorp said it would use within two years.

Ezcorp said the price will be paid for in cash and the issuance of about 1.6 million shares of Ezcorp's Class A non-voting stock.

Ezcorp in March agreed to buy at least 70 percent of Value Financial's shares. But the company said the deal was subject to a due diligence review. That review, the company said, is now complete.

The deal is expected to close on July 15.

Ezcorp said it expects the deal to add to its 2008 profit. The company said it now expects earnings of 34 cents for the quarter ended in September and $1.14 per share for the 2008 fiscal year.

The outlook for the both the quarter and the year matched Wall Street analysts' estimates, according to a poll by Thomson Financial.

Ezcorp said the acquisition could add between 12 cents and 14 cents per share to its profit.

Value Financial owns and operates 65 pawnshops in Florida, Georgia and Tennessee.

Ezcorp shares rose 23 cents to close at $12.33.