Intrum Justitia and Lindorff to Combine, Making Europe's Largest Collector Even Larger

According to a press release yesterday, Intrum Justitia and Lindorff have announced their intention to combine to create the industry leading provider of credit management services ("CMS"). An agreement has been entered into pursuant to which Intrum Justitia will acquire all the outstanding shares in Lindorff in exchange for newly issued shares in Intrum Justitia.

Intrum Justitia and Lindorff shareholders will own approximately 53% and 47% of the shares, respectively, in the combined entity. Nordic Capital Fund VIII, currently the indirect majority shareholder in Lindorff, will become the largest indirect shareholder in the combined entity. The transaction is subject to Intrum Justitia shareholder approval as well as regulatory and competition authority approvals. The transaction is expected to close in the second quarter of 2017.

The combination of Intrum Justitia and Lindorff creates the industry leading CMS company with local presence in 23 markets across Europe and a team of more than 8,000 professional, committed and caring employees. By joining forces, both local and global clients will benefit from a strong pan-European platform, enhanced service offering, innovative solutions and best in class compliance.

“Together we have the scale and unique position to capture the unprecedented opportunity for growth and expansion presented by ongoing structural trends in the banking sector. We share the ambition to lead the industry and the belief that we can contribute to a sound economy in Europe. Both companies have, each in their own right, pioneered efforts to transform how our industry does business with a focus on compliance and fair and respectful collection”, said Mikael Ericson, President and Chief Executive Officer of Intrum Justitia.

“This combination is a great fit both geographically and from a segment expertise and clientele perspective. It will strengthen our local presence and give us the international platform to continue to further improve our services to both small and large clients. Together with Mikael, I look forward to combining our employees’ skills and industry expertise to create the leading credit management services organization in the industry,” said Klaus-Anders Nysteen, President and Chief Executive Officer of Lindorff.

“We are really excited about this combination of the two longest standing credit management companies in Europe and recognize the strength of the companies and the opportunities in the industry. Given the growth trajectory of both businesses and the benefits that will come from the combination Nordic Capital looks forward to continue supporting the combined business as a listed company and sees significant potential for further value creation”, said Kristoffer Melinder, Managing Partner, NC Advisory AB, advisor to the Nordic Capital Funds.

In late 2015 insideARM reported that Intrum Justitia had announced its intention to grow aggressively through acquisition in the coming years.

The company wants to do “at least two, or more, acquisitions, on average over a few years,” said acting Chief Executive Officer Erik Forsberg in his first full interview since taking over the position from Lars Wollung on Nov. 2 of this year. Earlier, in May, Wollung had set the takeover target at two smaller companies a year, on average, over five years.

It seems they are making good on these plans.