US debt collection firm Portfolio Recovery Associates (
NASDAQ:PRAA,
Stock Forum) has agreed to acquire Norwegian industry-mate Aktiv Kapital AS (
GREY:AKKAF,
Stock Forum) in a $1.3 billion deal that will create one of the world’s largest acquirers of non-performing debt.
The arrangement will see $880 million spent to pick up the outstanding Aktiv Kapital equity and $435 million to satisfy outstanding loans.
PRA stock jumped $8.47 on the news, to $58.95, a 16.7% jump.
“Aktiv Kapital will provide PRA immediate access to sellers of consumer debt in new markets beyond the U.S. and the U.K., and a platform for growing investment in and servicing of consumer debt across Europe,” company representatives said in a news release. The deal will see the company hold “more than $4.6 billion in estimated remaining collections from customers.”
"This will be a transformative transaction for PRA, expected to be immediately accretive to earnings," said Steve Fredrickson, chairman, president and chief executive officer of PRA.