Press release from PR Newswire
Encore Capital Group Closes Acquisition of Asset Acceptance
Thursday, June 13, 2013
Encore Capital Group Closes Acquisition of Asset Acceptance14:01 EDT Thursday, June 13, 2013
Deal enables the company to drive operational efficiencies and deliver greater shareholder value
SAN DIEGO, June 13, 2013 /PRNewswire/ -- Encore Capital Group, Inc. (NASDAQ: ECPG) announced today that it has closed its acquisition of Asset Acceptance Capital Corp. All operating subsidiaries of Asset Acceptance are now part of Encore Capital Group. Combined, Encore and Asset Acceptance have purchased over 60 million individual consumer accounts, including credit card, telecommunications, consumer loans and other related assets, with a face value of over $130 billion.
"The acquisition of Asset Acceptance provides us not only with an additional portfolio, but also with valuable operations capabilities and synergy opportunities," said Encore's President and CEO Ken Vecchione. "Consumers also stand to benefit as we extend Encore's industry-leading Consumer Bill of Rights to millions more people who are on their way to financial recovery."
The combined platforms will allow for deeper consumer insights and analytics, which will help achieve more focused segmentation and targeting to drive better collections. Encore will also leverage its lower cost platform, including its global footprint, to drive down Asset Acceptance's cost-to-collect. Additionally, Asset Acceptance has a well-established internal legal group, which will accelerate Encore's internal legal initiative and bring more advanced technological capabilities to Encore.
Encore has been acquiring competitor portfolios since 2001 and has developed expertise in valuing, managing and integrating large transactions. Encore made two significant portfolio acquisitions last year alone and has already successfully integrated them into its operational platform. Encore also recently announced an agreement to acquire a controlling stake in United Kingdom and Ireland-based Cabot Credit Management, signaling the company's first international expansion.
"Acquisitions like these position Encore as a domestic and global leader in the consumer debt purchase and recoveries industry," said Mr. Vecchione. "These significant investments are a key component of our long-term growth plan, and the people that join us as part of these new relationships enhance our already deep, talented team."
About Encore Capital Group, Inc. Encore Capital Group is a leading provider of debt management and recovery solutions for consumers and property owners across a broad range of assets. Headquartered in San Diego, Encore Capital Group is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P SmallCap 600, the Barron's 400 and the Wilshire 4500. More information about Encore Capital Group can be found at www.encorecapital.com. Encore Capital Group's website and the information contained therein, is not incorporated into and is not a part of this press release.
Forward Looking StatementsThe statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These statements may include, but are not limited to, statements regarding our litigation, future operating results, performance, business plans or prospects. For all "forward-looking statements," the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.
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SOURCE Encore Capital Group, Inc.