Dollar Financial To Buy UK Online Lending Company for $195M

Dollar Financial Corp. (DLLR) agreed to buy online payday loan business Purpose U.K. Holdings Ltd. for an anticipated $195 million, its second international acquisition this month.

The company said the deal would immediately boost earnings and planned to update its profit outlook for the coming year to include the new business once it finalizes the deal.

Dollar Financial has been expanding its international footprint though takeovers. Earlier this month, it agreed to acquire Sefina Finance AB for about $73 million to expand its pawn lending business into Sweden and Finland. Earlier this year it also bought a leading Internet lending business in Scandinavia and a pawn-brokerage business in the U.K.

Friday, Chairman and Chief Executive Jeff Weiss said the latest takeover will solidify Dollar Financial's position as a leading provider of Internet loans in the U.K.

In its most recent quarterly results, Dollar Financial reported its adjusted profit unexpectedly rose as revenue and operating margin both improved.

Shares were down 0.5% at $28.49 after hours. Through the close, the stock has risen 21% in 2010, outperforming the wider market.