EZCORP ANNOUNCES NEW AGREEMENT
TO ACQUIRE VALUE FINANCIAL SERVICES
AUSTIN,
Texas (September 16, 2008) ¾ EZCORP, Inc. (Nasdaq: EZPW) announced today that
it has entered into a new merger agreement to acquire 100% of the
equity ownership of Value Financial Services, Inc
(“Value”). The agreement is a successor to negotiations
between the companies that were terminated on August 8, 2008,
and then recommenced in late August.
In the merger
agreement, EZCORP agrees to exchange three-quarters of a share of
EZCORP’s Class A Non-voting Common Stock
(“EZPW”) for each of the approximate 6,646,000 shares
of Value’s common stock. EZCORP also agrees to pay cash
consideration of $11.00 per share in lieu of EZPW shares for up to
20% of the outstanding Value shares.
Assuming
today’s EZPW closing price of $16.35 and that 20% of the
Value shares are acquired with cash, the purchase price will be
approximately $115.9 million plus potential contingent
payments. This purchase price is comprised of $79.8 million
paid to Value shareholders, assumption of estimate