Meta Financial Group, Inc. (NASDAQ:CASH) announced today that on November 1, 2016, its bank subsidiary, MetaBank®, completed the previously announced acquisition of substantially all of the assets and certain liabilities of EPS Financial, LLC (“EPS”) from privately-held Drake Enterprises, Ltd. (“Drake”). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. The EPS management team and other employees have been hired by MetaBank and EPS operations will continue to be based out of Easton, PA.
The acquisition was announced on October 3, 2016 and was consummated following satisfaction of certain closing conditions. The purchase price for the acquisition included the payment of approximately $21.3 million in cash and the issuance of 369,179 shares of Meta Financial common stock to Drake. The cash portion of the purchase price was funded from the proceeds of the previously announced subordinated debt issuance.
Tyler Haahr, MetaBank CEO, stated, “The completion of this acquisition further solidifies our presence in the tax services space and allows us to expand our services to even more ERO partners. We welcome EPS President Clark Gill and the entire EPS team to the MetaBank family.”
EPS President Clark Gill added, “MetaBank is a great fit for EPS and we couldn’t be happier to join such a strong company. Our tax services and industry expertise are a natural fit for Meta and we look forward to leveraging our combined strengths for our ERO partners and customers.”
EPS Financial, LLC, is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 Electronic Return Originators (“EROs”) nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services.
About Meta Financial Group
Meta Financial Group, Inc. is the holding company for MetaBank®, a federally chartered savings bank. Meta Financial’s shares are traded on the NASDAQ Global Select Market® under the symbol CASH. Headquartered in Sioux Falls, SD, MetaBank operates in both the Banking and Payments industries through: MetaBank, its traditional retail banking operation; Meta Payment Systems, its electronic payments division; AFS/IBEX, its insurance premium financing division; and Refund Advantage and EPS, its tax-related financial solutions divisions.
About Drake Enterprises
Drake Enterprises, Ltd. and its wholly-owned subsidiary, Drake Software, LLC, have provided tax preparers with efficient, reliable software to prepare and electronically file both federal and state tax returns for nearly 40 years. Over 50,000 tax professionals trust Drake for the tools they need to build and sustain their business. Best known for its award-winning customer service, Drake continues to develop innovative solutions for its loyal, passionate clients. Drake Software is headquartered in Franklin, North Carolina, and all of its development and customer service teams are located in the U.S.A.