Aktiv Kapital to be Acquired by Portfolio Recovery Associates

Tuesday, April 1, 2014

William Blair & Company acted as the exclusive financial advisor to Aktiv Kapital AS in connection with its sale to Portfolio Recovery Associates, Inc. for $1.3 billion. The transaction signed on February 19, 2014 and marks William Blair’s 21st completed transaction in the accounts receivable management (ARM) sector since 2002, and the fourth in the past 12 months. Pending customary closing conditions and regulatory approval, the transaction is anticipated to close in the second quarter of 2014.

Transaction Highlights

  • Deep sector and transaction expertise: Aktiv Kapital retained William Blair for its extensive knowledge and recent transaction experience within the ARM sector. William Blair had completed two of the largest transactions ever in the sector in the prior 12 months and, as a result, had deep knowledge of the global buyer universe.
     
  • Proactive deal creation, combining two market leaders across Europe and North America: Through a deep understanding of the global landscape, William Blair proactively positioned Aktiv to PRA as the premier opportunity to extend into continental Europe.  Articulating the strategic rationale for the buyer was critical in driving deal pace and value.
     
  • Execution excellence: William Blair executed a very fast and efficient process. The first discussions between the two parties occurred in late November 2013 and the transaction was announced in mid-February 2014. Due diligence on Aktiv’s operations in eight countries was completed in approximately 45 days.
     
  • Transformative acquisition to create a global market leader: The two companies combined will become one of the world’s largest investors in consumer debt, with more than $4.6 billion of estimated remaining collections. PRA’s leadership position in the United States has been significantly bolstered by Aktiv’s understanding of multiple geographies to create the only transatlantic debt purchaser with a pan-European presence.

About the Companies

Aktiv Kapital is one of Europe’s largest purchasers of non-performing consumer loans for more than 7 million customers in 15 markets across Europe and in Canada. At year-end 2013, Aktiv Kapital recorded future, estimated remaining collections of $1.9 billion and has purchased more than $35 billion in non-performing loans from more than 400 companies. Aktiv Kapital employs more than 400 people and is based in Oslo, Norway.

PRA is a leader in the U.S. debt buying industry. At year-end 2013, PRA reported estimated remaining collections of $2.7 billion.

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