December 31, 2010 / 9:51 PM / 8 years ago

UPDATE 1-Dollar Financial to buy Purpose UK for $195 mln

* Deal to add to earnings immediately

* Deal to help consolidate position in UK

Dec 31 (Reuters) - Dollar Financial Corp DLLR.O said its unit agreed to buy Purpose U.K. Holdings Ltd, which provides online payday loans under the brand PaydayUK, for about $195 million, expanding the payday lender’s foreign footprint.

Dollar Financial said the acquisition will help consolidate its position in the United Kingdom, where it currently has more than 350 company-operated stores.

Many payday lenders are expanding into countries like Mexico and the United Kingdom as they try to cut exposure to U.S. regulations aimed at capping interest rates. [ID:nSGE63R0MI]

Dollar Financial, which also operates pawnshops, expects the deal to immediately add to its earnings.

The deal, subjective to closing conditions and regulatory approval, is expected to close in the next 90 days, the company said in a statement.

Berwyn, Pennsylvania-based Dollar Financial’s shares, which have risen about 21 percent since the lender posted first-quarter results in Oct. 28, closed at $28.63 on Friday on Nasdaq. (Reporting by Rachel Chitra in Bangalore; Editing by Unnikrishnan Nair)

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