Atlanticus Holdings Corporation (NASDAQ: ATLC) has announced the acquisition of Mercury Financial LLC, a data-driven credit card platform serving near-prime consumers in the U.S. At closing, Mercury became a wholly-owned subsidiary of Atlanticus, marking a significant expansion of the company’s credit card capabilities.

Mercury is recognized as a top 25 credit card program, offering both Mercury-branded and co-branded credit card solutions. Its platform complements Atlanticus’ existing offerings, which include general-purpose credit cards, retail credit, patient financing, and dealer solutions.

The deal adds 1.3 million credit card accounts and $3.2 billion in credit card receivables, pushing Atlanticus’ total managed accounts to over 5 million and total receivables to more than $6 billion. The acquisition strengthens Atlanticus’ position as a tech- and data-centric credit services provider while opening doors for new partnerships and product expansion.

Strategic Implications

Atlanticus plans to drive value creation through portfolio optimization, cost synergies, and higher origination volumes for bank partners. Additional growth is expected from expanded marketing channels and product diversification leveraging Mercury’s existing platform and Atlanticus’ established markets.

“First and foremost, let me welcome the Mercury team members to the Atlanticus family,” said Jeff Howard, President and CEO of Atlanticus. “Through your investment in technology and rigorous focus on data and analytics, you have built an impressive platform, and we are excited to have you as part of our ongoing growth plans.”

Howard emphasized that the acquisition will expand Atlanticus’ reach, enhance product offerings, and leverage combined scale to provide best-in-class credit solutions at lower costs to a broader near-prime consumer segment. He also highlighted the potential for incremental growth through additional marketing channels and partnerships enabled by Mercury’s platform.

Deal Details

Atlanticus paid approximately $162 million in cash for Mercury, with potential earn-out payments contingent on portfolio credit performance exceeding expectations. The acquisition was supported by Guggenheim Securities as financial advisor and legal counsel from Troutman Pepper Locke and Willkie Farr & Gallagher. Deutsche Bank Securities advised Mercury, with legal guidance from Mayer Brown LLP and special committee counsel Uzzi & Lall.

Market Context

The deal positions Atlanticus to capitalize on the growing near-prime credit market, a segment increasingly targeted by fintechs leveraging data analytics to manage credit risk efficiently. With the addition of Mercury, Atlanticus strengthens its tech-driven approach to portfolio management and gains a platform to accelerate originations and cross-sell opportunities.

By combining scale, technology, and data expertise, Atlanticus is poised to expand its footprint in the U.S. credit card market while optimizing risk-adjusted returns for its bank partners.