In addition to increasing its own direct originations of subprime credit cards, CompuCredit Corp. said today it has agreed to acquire a lender specializing in the subprime sphere for $106 million, a deal that should close late this quarter.
CompuCredit will use equal parts cash and debt to finance the acquisition. Most of the company’s securitization activity in the past two years has involved portfolio acquisitions, as opposed to direct originations. The purchase of an existing lending platform will boost the company’s direct originations, officials said in a conference call this morning.
