July 13 (SeeNews) - Latvian car purchase financing company Mogo said on Monday it has acquired Moldovan non-banking credit company Sebo Credit for 2.9 million euro ($3.28 million).
"The acquisition is part of Mogo group‘s efforts to maintain its position as a leading consumer finance services provider in Moldova, one of Mogo group‘s most promising mid-tier markets to date," Riga-headquartered Mogo said in a press release.
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"With Sebo joining Mogo Finance group we will significantly strengthen our position in one of our most promising markets – Moldova, and will be able to offer Moldovan consumers a full set of non-bank financial services," Mogo Finance CEO Modestas Sudnius said.
Similar to other lending companies, Sebo was significantly affected by the recent lockdown due to the coronavirus pandemic as well as by new loan repayment moratorium recommendations introduced by Moldova's central bank, Mogo said.
Sebo’s parent company found it harder to continue supporting Sebo in order to regain its financial stability in the aftermath of coronavirus and in search of alternatives, it has decided to sell Sebo to Mogo group.
Mogo group plans to optimize the existing Sebo business by continuing to adapt the company to the post-coronavirus reality and re-establish Sebo operations.
Post-acquisition Sebo will continue to operate within a standalone legal entity and continue to use its already well established and well regarded brand name, the group said. Sebo’s own proprietary IT systems will continue to be used for the operating purposes and Sebo’s results will be reported within the consolidated results of Mogo Group separately from Mogo’s secured used car finance business.
Established in 2012, headquartered in Riga, Latvia Mogo Finance operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia, Uzbekistan, Kazakhstan, North Macedonia, Bosnia and Herzegovina, Kenya and Uganda.
Sebo is the fifth largest non-banking financial services provider operating in Moldova since 2017, with a database of more than 250,000 customers and significant offline footprint.
Sebo offers consumer loans with a maximum term of 48 months and maximum amount of 1,500 euro.
($= 0.8859 euro)