Large debt buyer Portfolio Recovery Associates, Inc. (Nasdaq:PRAA) announced today that it has completed its acquisition of Aktiv Kapital AS, a Norway-based debt buyer of accounts throughout Europe and Canada. Effective today, the combined companies will be known as PRA Group.
PRA also has completed its acquisition of Pamplona Capital Management’s Individual Voluntary Arrangements (IVA) Master Servicing Platform and other operating assets in the U.K., furthering the company’s international expansion.
“Leading banks and other creditors in Europe and Canada see value in a well-capitalized buyer of non-performing debt with a strong brand and reputation for compliance, able to purchase substantial portfolios on a regular basis,” said Steve Fredrickson, chairman, president and chief executive officer, PRA Group. ”We plan to leverage unique technology, data analytics and more than 20 years of experience in multiple countries, regions and cultures for the benefit of global banks, creditors, their customers and our shareholders.”
In Europe and Canada, customers will continue to see the familiar Aktiv Kapital name. In the U.S. and U.K., customers will still interact with Portfolio Recovery Associates. PRA will continue to provide high-value contingency collection services to its existing U.K. clients in the financial services, retail, telecom, and utility industries.
PRA has appointed Geir Olsen, chief executive officer and board member of Aktiv Kapital, as chief executive officer of PRA Group Europe, which includes all of Aktiv Kapital’s European operations and PRA’s existing operations in the U.K. His management team and staff from Aktiv Kapital Europe and PRA UK’s management team and staff will report to Olsen.
Pamplona’s Andrew Berardi has been appointed Managing Director – UK, Insolvency Investment Services, PRA Group. His team of six people from Pamplona’s U.K. IVA business also has joined PRA. IVAs are a formal alternative for U.K. consumers to primarily avoid bankruptcy. PRA’s global Bankruptcy Services business also has been renamed Insolvency Investment Services effective today.
PRA will further discuss its acquisitions in Europe as the company exits its current quiet period upon announcing second quarter 2014 results after market close on August 5.