Portfolio Recovery Announces Another Deal in Government Services Sector

Debt buyer and collector Portfolio Recovery Associates (PRA) said late Friday that it has acquired the assets of Broussard Partners & Associates, a company that specializes in providing audit services to local tax authorities in Louisiana.

The deal further expands Portfolio Recovery Associates’ (Nasdaq: PRAA) push into government revenue services, a sector of its fee-for-service business platform.

Norfolk, Va.-based PRA said that the terms of the acquisition of privately held Broussard were not disclosed. PRA paid cash for the Houston-based Broussard, and the deal closed on August 1. The company has been folded into PRA’s government services unit, RDS.

Portfolio Recovery has recently been focusing on growing its fee-for-service business with an apparent emphasis on the government sector across the U.S. Its government revenue enhancement unit was initially acquired in 2005 in the form of RDS/Alatax, based in Alabama (“Portfolio Recovery Associates Acquires Government Collections Firm Alatax for $17.5 million,” Aug. 1, 2005). In late June of this year, PRA announced the acquisition of MuniServices, LLC, a California company that specializes in revenue enhancement and collections in the government sector (“Portfolio Recovery Associates to Acquire Government Collector for $29 million,” June 25). PRA also acquired a tax administration firm, The Palmer Group -- based in Louisiana -- in July 2007.

"The acquisition of Broussard Partners expands RDS' existing audit services in Louisiana and represents yet another step forward in government enhancement for Portfolio Recovery Associates,” said Steven Fredrickson, PRA president and CEO, in a press release. “We view the government business as an important diversification of our revenue stream, and we are very happy to have Lisa Broussard and her team contributing to the continued success of our RDS unit.”

PRA announced that Lisa Broussard, Broussard Partners & Associates’ president, has entered into a long-term employment agreement with PRA through its RDS unit.

"We are very pleased to be joining RDS and Portfolio Recovery Associates," Broussard said. “We have always sought to provide our clients with the very best service, helping them prosper in both good times and difficult periods. With the additional resources now available to us, I know we can raise the bar even higher.”

Broussard was founded in 1995 and is a leading provider of audit services to parishes in Louisiana, with 34 of the state's 64 parishes as clients. Broussard Partners has a workforce of approximately 25 employees.