The deal, which is expected to close in the second quarter, gives the combined firm an implied valuation of US$643 million. Katonah, N.Y.-based NextPoint is incorporated in British Columbia, and raised US$200 million in an August 2020 IPO. (The Logic)
Talking point: Both tax-preparation franchisor Liberty and credit provider LoanMe target consumers and small businesses; NextPoint said it plans to expand into further financial products and services following this deal. It comes at a time when tax-preparation firms and small-dollar lenders face challenges from cheaper online rivals. NextPoint’s share price on the Toronto Stock Exchange closed down more than two per cent on Monday following the news.