Atlanticus Holdings Corporation is a U.S.-based financial services company specializing in credit and related financial products for consumers. Its operations are primarily divided into two key segments: Credit as a Service and Auto Finance. The Credit as a Service segment focuses on originating diverse consumer loan products. This includes both private label and general-purpose credit cards, which are issued by lenders through various distribution channels such as retail partnerships, healthcare providers, direct marketing campaigns, digital platforms, and strategic collaborations. It also extends credit to consumers for a wide array of purchases, from consumer electronics and furniture to elective medical procedures, general healthcare, educational services, and home improvements, achieved through partnerships with retailers and service providers. Furthermore, this segment provides comprehensive loan servicing, encompassing risk management and customer service outsourcing for other entities. It also actively tests and invests in emerging consumer finance technology platforms. The Auto Finance segment is dedicated to acquiring and/or servicing automobile-secured loans. These loans originate from a vetted network of independent automotive dealerships and finance companies operating within the buy-here, pay-here and used car sectors. Additionally, it offers floor plan financing and various installment lending products. Beyond its segments, Atlanticus also actively invests in and manages portfolios of credit card receivables. Established in 1996, Atlanticus Holdings Corporation is headquartered in Atlanta, Georgia.
Atlanticus Completes Sale of CAR Auto Finance Operations
Atlanticus has completed the sale of its CAR Auto Finance operations to an unaffiliated third party, exiting auto lending entirely — CAR comprised 100% of the company's Auto Finance segment, which will no longer exist after the transaction.
Total consideration was approximately $71.2 million, consisting of $56.2 million in cash and a $15.0 million seller note, with roughly 154 CAR team members transitioning to the unnamed buyer.
CEO Jeff Howard said the transaction strengthens the balance sheet and allows Atlanticus to concentrate capital and management resources on the consumer credit products with the greatest long-term value creation opportunities.
The company expects to use the cash proceeds to reduce debt and invest in higher-growth product lines.