EZCorp Inc. said Monday that Value Financial Services Inc. of Orlando, an operator of pawnshops, has terminated an agreement to sell itself to the pawn and payday lender for $73 million in cash and stock.
The deal was announced June 5. EZCorp, of Austin, said it was notified of the termination over the weekend.
Joe Rotunda, EZCorp's president and chief executive, said the company had counted on Value Financial to add 1 cent a share to earnings. Because the deal was terminated, he said, EZCorp has cut its earnings-per-share forecasts to 34 cents for the fiscal fourth quarter that will end Sept. 30 and $1.18 for the full fiscal year.
It will also take a charge of $900,000 during the quarter for transaction-related expenses, he said.
By midafternoon EZCorp shares were off almost 8% from Friday's closing price of $17.33 a share, which was 1% lower than their price when the deal was announced.