Intrum Justitia strengthens growth outlook through acquisition in the United Kingdom

Intrum Justitia has entered into an agreement to acquire 1st Credit, a mid-sized purchased debt company in the United Kingdom. The purchase price on a cash and debt free basis is about GBP 130 million, attributable to a diversified portfolio of receivables, deriving from investments from several sellers in the financial industry. 1st Credit generated earnings before interest, tax, depreciations and amortizations on purchased debt of about GBP 33 million in 2015.

1st Credit has a strong operation for collection of financial receivables, with about 130 employees mainly involved in the collection of its purchased debt portfolios. It is one of few companies in the UK that are regularly invited to most of the panels where banks and financial companies invite selected buyers to purchase portfolios. 1st Credit has invested successfully to adapt to increased regulation in the UK market and it has received several awards as the most compliant debt collection company in the industry.

“By acquiring 1st Credit, we strengthen our ability to service clients in the financial industry and we take another important step towards accelerating the growth of Intrum Justitia. The UK market is one of the largest and most developed in Europe. With 1st Credit, we acquire a strong unit with a solid organization which we believe can grow into one of the market leaders in the UK in the coming years,” says Mikael Ericson, President and CEO of Intrum Justitia AB.

The acquisition is expected to be completed during the first quarter of 2017 and it is estimated to be accretive to Intrum Justitia’s earnings per share from then. 1st Credit will be a part of Intrum Justitia’s Central Europe region.

For further information, please contact:

Erik Forsberg, CFO
Tel: + 46 8 546 102 02

Intrum Justitia is Europe’s leading Credit Management Services (CMS) group, offering comprehensive services, including purchase of receivables, designed to measurably improve clients’ cash flows and long-term profitability. Founded in 1923, Intrum Justitia has some 3,850 employees and operations in 19 markets. Consolidated revenues amounted to about SEK 5.6 billion in 2015. Intrum Justitia AB is listed on Nasdaq Stockholm since 2002. For further information, please visit www.intrum.com