Oportun, a mission-driven financial services company, today announced that it has signed a definitive agreement to sell its credit card portfolio to Continental Finance. This transaction reflects a key milestone towards Oportun’s initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award-winning Set & Sav savings product.
The closing date is now anticipated to be on or around November 10, 2024, rather than by the end of the third quarter as indicated on the August 8th second quarter earnings call. Due to the revised closing date, the sale is expected to be accretive by approximately $2 million to Adjusted EBITDA in 2024 as compared to the $4 million previously indicated. Oportun continues to expect that the transaction will result in Adjusted EBITDA favorability of approximately $11 million in 2025.
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“We’re pleased to have signed a definitive agreement to sell our credit card portfolio to Continental Finance, a leading U.S. credit card marketer and servicer,” said Jonathan Coblentz. “This transaction underscores our commitment to focus on winning in the marketplace with our core product lines, thereby enhancing the value we can deliver to our shareholders.”
Tamer El-Rayess said “Continental Finance is excited to enter into an agreement to acquire Oportun’s Visa credit card portfolio with its partner bank, The Bank of Missouri. The Continental Finance team will be collaborating with the Oportun team to ensure a seamless transition of their customers onto our platform. Our goal is to continue to provide exceptional, personalized service to these valued customers for many years to come.”
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