Credit Corp acquires Baycorp and increases 2020 guidance

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    Credit Corp Group Limited (Credit Corp) announces today that it has acquired Baycorp Holdings Pty
    Limited and its associated entities (collectively Baycorp) from Encore Capital Group (NASDAQ: ECPG)
    for a total net consideration of approximately A$65 million.
    Baycorp is a large and well-established debt purchasing and debt collection operator across Australia
    and New Zealand. Its assets comprise a sizeable purchased debt ledger (PDL) book, a PDL collection
    platform and agency collection businesses in Australia and New Zealand.
    Some integration of the acquired businesses will be required in to order to deliver pro-forma returns.
    The PDL collection platform will be promptly merged with Credit Corp’s existing Australian and
    New Zealand debt buying business. The New Zealand agency business will be preserved and
    enhanced. The Australian agency operation will be progressively restructured to ensure that it operates
    sustainably.
    Mr Thomas Beregi, CEO of Credit Corp, commented that the acquisition provided both an attractive
    secondary PDL book acquisition and the opportunity to create a large and successful agency business.
    “We expect to achieve our targeted investment return on the PDL component of the transaction and see
    opportunity to scale up our existing agency activities” he said.
    Baycorp’s New Zealand agency business enjoys a strong reputation and an impressive position in the
    market. Mr Beregi acknowledged the quality of the business and identified the strategic benefit of
    acquiring a physical presence in the market. “Entry into the New Zealand agency market by acquiring a
    leading operator will enable us to broaden our client relationships and put us in a better position to grow
    our debt buying market share” he said.
    Revised 2020 guidance
    The acquisition significantly improves Credit Corp’s current year earnings outlook. It will produce
    earnings growth in the core Australian and New Zealand debt buying business to complement strong
    growth from the company’s US debt buying and consumer lending segments. Revised earnings
    guidance for 2020 is for growth in Net Profit after Tax (NPAT) over the prior year of 15% to 18%.

    courtesy of Bell Direct
    ================================================================================

    ( DYOR )

    i hold CCP ( 'free-carried ' )

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    I'm sure they didn't regret it.

    2 likes
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    Everything was cool until we were quarantined.

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    Posts

    nope the wheels fell off September 2019 , when they needed Repo Madness , the virus is just a distraction and money grab ( bail-out )

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    Well, of course, it's undoubtedly a good idea. In principle, Baycorp was an integral part of Encore's Latin America and the Asia Pacific (LAAP) operations, which had no material impact on the Company's overall consolidated operating results.

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    Well, of course, it's undoubtedly a good idea. In principle, Baycorp was an integral part of Encore's Latin America and the Asia Pacific (LAAP) operations, which had no material impact on the Company's overall consolidated operating results. The transaction announced today eliminates the last of Encore's acquired operating platforms outside of the United States and Europe. My head is boiling when I start thinking about this topic. There are too many topics I want to explore at once. I was recently researching the topic ofMortgage Advice Manchester. I was looking for any downsides but never got around to it. I have a sort of passion for exposing different companies.

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