Chicago-based lender for credit-challenged consumers Enova plans to acquire small business lender OnDeck, in a cash and stock deal worth around $90M.

Why should we care?
In a deal expected to close later this year, Enova will acquire OnDeck for a fire sale price. At the time of OnDeck’s IPO, the company was valued at $1.5B. OnDeck, however, has since fallen on tough times. In the first quarter of this year, it posted a $59M net loss, with more than 40% of its loan book in some stage of delinquency. It’s since drastically reduced lending, and trimmed its headcount by 20%. Enova wasn’t a big player in the small business lending space, and OnDeck allows it to expand its business customer base quickly. The company, which is in a strong financial position, will add the OnDeck brand, products, and services to create a combined company with significant scale. It may not be the last “pandemic-induced acquisition” of the year, says industry watcher Peter Renton.