The Canadian Press

The Cash Store Financial Services Inc. announced Tuesday it plans to acquire EZ Cash, a regional payday loan provider with 14 locations throughout Saskatchewan.

Cash Store Financial (TSX:CSF) said the acquisition, for $4.4 million in cash, is expected to close around April 26.

The company, Canada’s largest provider of loans to those who have trouble getting credit from traditional financial institutions, expects to fully integrate all 14 EZ Cash locations into its current operations by converting them to the company’s Instaloans banner.

Cash Store Financial currently operates 18 Cash Store locations in Saskatchewan among its almost 500 Cash Store and Instaloans locations across Canada.

“The acquisition of EZ Cash will accelerate the company’s plan to grow its overall national footprint through expansion of the Instaloans branch network,” Cash Store said in a news release.

For the 12 months ending Dec. 31, EZ Cash’s revenue was $4.2 million.

“The acquisition of EZ Cash is part of our ongoing strategy to further secure our position as the largest operator in Canada,” Cash Store chairman and CEO Gordon Reykdal said.

“With the onset of industry regulation, many smaller operators are choosing to exit the market. Consolidation within the short-term loan market is expected to provide further expansion opportunities. We will continue to explore all accretive opportunities as they arise.”

Reykdal said the company hopes to open between 70 and 80 branches, exclusive of acquisitions, this year.

Cash Store Financial’s stock was up 17 cents at $15.67 in early afternoon trading Tuesday on the Toronto Stock Exchange.