Debt purchaser Arrow Global has acquired the business of Capquest, creating a combined entity with some £1.1bn in 120-month Estimated Remaining Collections (ERC).
Capquest was purchased with an enterprise value calculated at £158m, a figure representing 70% of its £224m 120-month ERC, and 4.6 times its last reported 12-month EBITDA of £34m. Speaking exclusively to Credit Today, Arrow Global chief executive officer Tom Drury said the deal, which has “moved fairly quickly” since its inception earlier this year, has made Arrow the second debt purchase business in the UK to achieve a 120-month ERC of more than £1bn. Drury commented it was “Important to maintain scale in a consolidating market”, adding that the purchase would also develop Arrow’s business model through use of the “strong and compliant” Capquest platform.....Read more here