Expert Global Solutions (EGS), a global leader in the Business Process Outsourcing (BPO) industry and parent company of ARM giant NCO Group, announced Monday that it has entered into an agreement to sell certain segments of its ARM business to private equity firm Platinum Equity. Financial terms of the pending transaction were not disclosed.

The proposed sale of Transworld Systems, Inc. comprises several business segments within EGS’ ARM business: Transworld Systems, Education, Attorney Network, Healthcare Bad Debt, Government, and U.S.-based Third Party Collections. Once the transaction is completed the business is expected to operate as Transworld Systems, Inc. (TSI) going forward.

Bob Segert, newly-named EGS president and CEO, cites the proposed sale as a win for all involved.

“As a result of the sale of these businesses, EGS will be able to sharpen its focus on our key business segments, services and strengths, specifically CRM and First Party Collections,” Segert said. ”Platinum Equity has been a great partner throughout this process, and we are confident these businesses will continue to thrive under their ownership.”

Platinum Equity is a Los Angeles-based private equity firm with a highly-specialized focus on business operations.

“The business has great leadership, powerful proprietary systems and a strong culture of compliance,” said Jacob Kotzubei of Platinum. “We believe there is a great opportunity to grow the business and maintain the highest standards of excellence by continuing to invest in infrastructure and technology.”

The transaction is expected to be completed within the next several months, subject to satisfaction of customary closing conditions. Credit Suisse Securities (USA) LLC acted as financial adviser to EGS.

The deal announcement did not come as a surprise to many in the ARM industry.

“There have been rumblings about EGS divesting segments of their ARM business for a while now,” said Mike Ginsberg, CEO of ARM advisory firm Kaulkin Ginsberg. “Private equity continues to be interested in ARM deals with the explosive growth of student loans, healthcare, and government services.  By keeping the NCO third party collection units together, Platinum Equity starts out with a platform company that has size and market diversification, but leadership is always the differentiator when it comes to success in ARM.”


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