EOS Group acquires South Eastern European Debt Management Group Europe Matrix

Hamburg, Germany – The EOS Group is continuing with its expansion strategy: the internationally positioned financial services company acquired today 100% of Matrix Holdings, one of the leading debt management groups in SE Europe which controls 4 subsidiaries through offices in Athens, Sofia, Skopje and Belgrade. An appropriate contract was signed by the two groups’ CEOs on July 13, 2005 in Hamburg.

KG EOS Holding acquisition with immediate effect from July 13 gives the international financial services group access to four more markets in SE Europe covering a total of 16 European countries and the USA. The acquisition is part of EOS Group’s expansion strategy and all 4 companies will be renamed “EOS Matrix”.

The expansion of EOS Group in South Eastern Europe where it is already present with offices in Romania and Turkey will strengthen its market position particularly in its highest turnover business unit of receivables management: “In this segment we are the first international company to open up the Greek market ? an important strategic competitive advantage”, explains Hans?Werner Scherer, CEO of the EOS Group. “Greece gives us access to a near maturity consumer credit and telecommunication receivables market with potential that’s an important sector in our customer portfolio.” The financial services company is bringing competence in its three major business units, receivables management (B2B & B2C), information services and cash flow management including debt purchasing and factoring which will be extended with to the region following the acquisition. The group will make cross-border transactions the primary goal of the new cooperation.

Since the 1990′s the EOS Group has been realigning its strategy. Besides consistently expanding its product range, the financial services company has concentrated on opening up international markets with selective acquisitions. In addition to Germany and the 4 countries where Matrix is present, the Group is represented in the USA, Switzerland, the Netherlands, Poland, Slovakia, Slovenia, the Czech Republic, Turkey, Hungary, the UK, Austria and Romania. EOS looks after more than 20,000 customers around the world including telecommunication companies, renowned banks, insurance companies, energy supply companies, industrial and retail enterprises.

Europe Matrix Financial Services which operates primarily in the receivables management area has a customer portfolio in which financial institutions such as the National Bank of Greece, EFG Eurobank, Alpha Bank, Piraeus Bank and SG General Bank predominate. Building upon a growing customer base the company has expanded in the Balkans and serves now more than 35 banks, telecommunication and utility companies.

“The EOS Group’s international network and the increased liquidity provided by our new, strong partner open up far-reaching prospects for us,” explains Christos Savvides, CEO of Europe Matrix Group. “For example the company can now add debt purchase and B2B debt management to its range of services. Europe Matrix benefits from the EOS Group?s uniform quality standards and the strong international brand.”

“It’s a text-book win-win situation,” is how Hans Werner Scherer, CEO of EOS Group sums it up.

The EOS Group
With more than 2000 employees operating in 13 countries, the EOS Group is one of the leading financial services companies in Europe. In its three business units of receivables management, information management and cash flow management, the EOS Group generated sales of EUR 194 million in the financial year 2003-2004. In the process, the sales generated by the EOS Group which belongs to the Otto Group, were recorded using the international accounting standard IAS/IFRS for the first time. This means that while they comply with the future requirements of the international capital market, they are not directly comparable with previous sales figures announced by the EOS Group. The gross sales according to German commercial law (HGB) that were published in the last financial year amounted to EUR 212 million. The comparable figure for gross sales this year corresponds to EUR 215 million. The EOS Group has thus asserted itself well in a difficult environment.

Europe Matrix Group
With a workforce of 200, Europe Matrix offers receivable management services from offices in Athens, Sofia, Skopje and Belgrade to 35 banks, telecommunications and utility companies in South Eastern Europe. After being founded in 2001, the company was able to establish itself quickly in the receivables management industry by giving emphasis on highly trained staff, modern collection techniques and valuable MIS feedback to the clients. In the financial year 2004 the Group posted sales of EUR 2.5 million, an increase of 70% compared to the previous year. Financial institutions such as National Bank of Greece, EFG Eurobank Ergasias, Alpha Bank, Piraeus Bank and SG General Bank are among its prominent customers. Europe Matrix is a founding member of the Greek Debt Management Companies Association, which is a member of the Federation of European National Collection Associations (FENCA).