NCO Group Unit Acquires Australian Collection Agency

Australian Receivables Ltd (ARL), the Australian subsidiary of NCO Group, has acquired Australian debt recovery specialists Statewide Mercantile Services (SMS).

The acquisition of SMS will deliver a specialist receivable resource with more than 220 employees, 12 offices and services mirroring the most successful companies in the sector.

The Process Serving and Field activities will continue in the name of Statewide Mercantile Services Pty Ltd, while receivables management and collection services, together with the rapidly growing debt purchase activities, will be operated under the ARL brand.

In recent weeks NCO has also been active in the debt acquisition market in Australia, displacing some established Australian acquirers and securing forward flow contracts with major Australian financial Institutions, in transactions worth more than $150 million.

Regional managing director Paul Cooney said the acquisition was ARL's first since becoming part of the NCO Group.

"Since NCO Group Inc acquired ARL in July 2006, it has been reviewing local acquisition opportunities, consistent with the stated investment strategy for the expansion of their business in the region," Mr Cooney said.

"I am confident that the merging of the two businesses will deliver substantial returns to all of our stakeholders, and will position the new company as one of the larger providers in the debt recovery and receivables management services sectors in the region."