Green Dot Corporation (NYSE:GDOT) Files An 8-K Completion of Acquisition or Disposition of AssetsItem 2.01. Completion of Acquisition or Disposition of Assets.
Green Dot Corporation (NYSE:GDOT) Files An 8-K Completion of Acquisition or Disposition of Assets
On February 28, 2017 (the “Closing Date”), Green Dot Corporation (“Green Dot” or the “Company”) announced the consummation of the transactions (the “Transactions”) contemplated by the Equity Purchase Agreement (the “Purchase Agreement”), dated January 25, 2017, by and among, Green Dot, Empowerment Ventures, LLC, a Delaware limited liability company (“Empowerment Ventures”), and UniRush, LLC, a Delaware limited liability company and wholly-owned subsidiary of Empowerment Ventures (“UniRush”).
Under the terms of the Purchase Agreement, Green Dot purchased all of UniRush’s limited liability company interests on the Closing Date for $140.7 million (the “Purchase Consideration”), of which $12.5 million was deposited in an escrow fund to serve as a source of payment of any indemnification obligations of Empowerment Ventures under Article VI of the Purchase Agreement. In addition, Green Dot has agreed to pay Empowerment Ventures an earn-out equal to the greater of (i) a specified percentage of the revenue generated by the RushCard portion of UniRush’s business during the five-year period following the closing or (ii) $20 million, payable quarterly over the five years.
The description of the Transactions set forth above does not purport to be complete and is qualified in its entirety by reference to the Purchase Agreement, which was filed by the Company as Exhibit 2.01 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on January 30, 2017, which is incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
In connection with the Transactions, Green Dot borrowed $75 million under its existing $75 million revolving credit facility (the “Revolving Credit Facility”), the proceeds of which were used to fund in part Green Dot’s payment of the Purchase Consideration. Following the draw down, Green Dot no longer has any borrowing capacity under the Revolving Credit Facility.
A summary of the material terms of the Revolving Credit Facility is included in Green Dot’s Current Report on Form 8-K filed with the SEC on October 24, 2014 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired
The audited consolidated financial statements required to be filed under Item 9.01(a) of this Current Report on Form 8-K will be filed by amendment to this Current Report on Form 8-K no later than 71 days after the date on which this Current Report on Form 8-K is required to be filed.
(b) Pro Forma Financial Information
The pro forma financial information required to be filed under Item 9.01(b) of this Current Report on Form 8-K will be filed by amendment to this Current Report on Form 8-K no later than 71 days after the date on which this Current Report on Form 8-K is required to be filed.
About Green Dot Corporation (NYSE:GDOT)
Green Dot Corporation, along with its subsidiaries, is a pro-consumer financial technology innovator. The Company is a provider of reloadable prepaid debit cards and cash reload processing services in the United States. The Company operates through two segments: Account Services, and Processing and Settlement Services. Its account services segment includes branded deposit account programs, including Green Dot-branded and affinity-branded general purpose reloadable (GPR) card accounts; checking accounts, and open-loop gift cards. Its processing and settlement services include reload services and tax refund processing services. It also has operations in the mobile technology and mobile banking with GoBank mobile checking account. Through its subsidiary, SBBT Holdings, LLC (TPG), it also operates as a processor of tax refund disbursements in the United States. It offers checking account products, such as GoBank, that allow customers to acquire and manage checking accounts. Green Dot Corporation (NYSE:GDOT) Recent Trading Information
Green Dot Corporation (NYSE:GDOT) closed its last trading session down -0.62 at 29.31 with 278,147 shares trading hands.
Green Dot Corporation, along with its subsidiaries, is a pro-consumer financial technology innovator. The Company is a provider of reloadable prepaid debit cards and cash reload processing services in the United States. The Company operates through two segments: Account Services, and Processing and Settlement Services. Its account services segment includes branded deposit account programs, including Green Dot-branded and affinity-branded general purpose reloadable (GPR) card accounts; checking accounts, and open-loop gift cards. Its processing and settlement services include reload services and tax refund processing services. It also has operations in the mobile technology and mobile banking with GoBank mobile checking account. Through its subsidiary, SBBT Holdings, LLC (TPG), it also operates as a processor of tax refund disbursements in the United States. It offers checking account products, such as GoBank, that allow customers to acquire and manage checking accounts. Green Dot Corporation (NYSE:GDOT) Recent Trading Information
Green Dot Corporation (NYSE:GDOT) closed its last trading session down -0.62 at 29.31 with 278,147 shares trading hands.