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Atlanticus Completes Sale of CAR Auto Finance Operations

Atlanticus exits auto finance to bolster its balance sheet and refocus capital on higher-growth consumer credit offerings.

(Neutral)
(Very Positive)
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Atlanticus (ATLC) has completed the sale of its CAR Auto Finance operations, which represented 100% of its Auto Finance segment, for approximately $71.2 million in total consideration. The price consists of $56.2 million in cash and a $15.0 million seller note, and Atlanticus will no longer operate an Auto Finance segment following the transaction. Approximately 154 CAR team members are transitioning to the buyer, and the company expects to use cash proceeds to reduce debt and invest in higher-growth consumer credit product lines.

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Positive

  • Total consideration of approximately $71.2 million from CAR sale
  • $56.2 million received in cash and a $15.0 million seller note
  • 154 employees associated with CAR transition to the buyer
  • Company expects to use cash proceeds to reduce debt

Negative

  • CAR comprised 100% of the Auto Finance segment, which will cease operations at Atlanticus

Market Context

ATLC closed at $93.20 before the announcement, while no peer headlines or momentum-scanner entries w...
Analysis

ATLC closed at $93.20 before the announcement, while no peer headlines or momentum-scanner entries were recorded; the sale added transaction-specific information to a pre-existing market position rather than a documented peer-news theme.

Key Figures

Total consideration: $71.2 million Cash consideration: $56.2 million Seller note: $15.0 million +2 more
Total consideration
$71.2 million
Sale of CAR Auto Finance operations
Cash consideration
$56.2 million
Sale proceeds
Seller note
$15.0 million
Component of transaction consideration
Auto Finance segment sold
100%
CAR comprised the entire Auto Finance segment
Team members transitioning
Approximately 154
Employees associated with CAR

Key Terms

seller note
1 terms
seller note financial
"consisting of $56.2 million in cash and a $15.0 million seller note"
A seller note is a type of loan or financial promise made by the person selling a business or asset to the buyer, often used to help bridge a gap in funding. It acts like the seller lending money to the buyer, with the agreement that the buyer will pay it back over time. For investors, seller notes can influence the overall risk and potential returns of a deal, as they represent an additional layer of financial commitment and potential repayment.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ATLANTA, Sept. 17, 2026 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus,” the “Company,” “we,” “our” or “us”), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced that it has completed the sale of its CAR Auto Finance operations (“CAR”) to an unaffiliated third party.

CAR comprised 100% of the Company’s Auto Finance segment. Following the transaction, Atlanticus will no longer operate an Auto Finance segment. Total consideration to Atlanticus was approximately $71.2 million, consisting of $56.2 million in cash and a $15.0 million seller note. Approximately 154 team members associated with CAR are transitioning to the buyer in connection with the transaction.

“We are pleased to announce the completion of the sale of CAR,” said Jeff Howard, President and Chief Executive Officer of Atlanticus. “CAR has been a valuable part of Atlanticus for many years, and I want to thank the entire CAR team for their many contributions to our success. The transaction strengthens our balance sheet and allows us to concentrate our capital and management resources on the consumer credit products where we see the greatest opportunities for long-term value creation and growth.”

Atlanticus expects to use the cash proceeds from the sale to reduce debt and invest in higher-growth product lines.

About Atlanticus Holdings Corporation

Empowering Better Financial Outcomes for Everyday Americans

Atlanticus Holdings Corporation empowers better financial outcomes for Everyday Americans by enabling bank, retail, and healthcare partners to offer more inclusive financial solutions to consumers. Leveraging proprietary technology and advanced analytics, Atlanticus applies more than 30 years of operating experience, servicing over 23 million customers and more than $53 billion in consumer loans, to support lenders across a broad range of consumer credit products. These offerings span retail and healthcare private-label credit and general purpose credit cards, through an omnichannel platform, including strategic partnerships.

Atlanticus is guided by the principles of responsible lending, smart innovation, and expanding access to credit for consumers working toward a stronger financial future.

Forward-Looking Statements

This press release contains forward-looking statements that reflect the Company’s current views regarding, among other things, the expected transition of employees, the Company’s intended use of proceeds from the transaction, capital allocation and future investment and growth opportunities. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

Contact:
Investor Relations, investors@atlanticus.com
Dan Mauch, daniel.mauch@atlanticus.com
Sara Savarino, sara.savarino@atlanticus.com


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What exactly did Atlanticus sell in this transaction?

Atlanticus sold its CAR Auto Finance operations, which comprised 100% of the company’s Auto Finance segment. After the sale, Atlanticus will no longer operate an Auto Finance segment.

How is the $71.2 million in consideration from the CAR sale structured?

Total consideration is approximately $71.2 million, consisting of $56.2 million in cash and a $15.0 million seller note.

What happens to CAR employees after the sale?

Approximately 154 team members associated with CAR are transitioning to the buyer in connection with the transaction.

How does Atlanticus plan to use the cash proceeds from the CAR sale?

Atlanticus expects to use the cash proceeds from the sale to reduce debt and to invest in higher-growth product lines within its consumer credit offerings.

What strategic rationale did Atlanticus give for selling CAR?

The company said the transaction strengthens its balance sheet and allows it to concentrate capital and management resources on consumer credit products where it sees the greatest opportunities for long-term value creation and growth.

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