Intrum Justitia AB acquired Profidebt s.r.o., a market leader in purchased debt in the Czech Republic, for approximately $41.9 million.
Profidebts assets mainly include a diversified portfolio of receivables, deriving from investments over several years, from many different sellers in various industries. The company has an estimated 70 employees, mainly involved in the collection of its purchased debt portfolios, as well as a smaller unit for credit management services to external clients.
Profidebt also controls certain forward flow contracts generating future case volumes. During 2014, Profidebt will be integrated with Intrum Justitias Czech unit, which has approximately 30 employees, mainly focusing on credit management services.
With the acquisition of Profidebt, we will strengthen our market position in the Czech Republic significantly. We will gain access to a diversified portfolio of receivables, forward flow contracts as well as valuable payment data that will strengthen both our purchased debt and our credit management services business, says Lars Wollung, President and CEO of Intrum Justitia AB.
The complete portfolio has been analyzed and assessed in accordance with Intrum Justitias customary principles and return requirements. The acquisition will be consolidated from February, 2014.
Intrum Justitia is Europes leading Credit Management Services (CMS) group, offering comprehensive credit management services, including Purchased Debt, designed to measurably improve clients cash flows and long-term profitability. Founded in 1923, Intrum Justitia has some 3,500 employees in 20 markets.