Bethesda, MD — Kaulkin Ginsberg Company announced today the acquisition of Nova Collection Services Ltd. and Nova Information Technology Ltd. (Nova) by Exton, Pennsylvania-based AllianceOne Incorporated (AllianceOne). Terms of the transaction were not disclosed. Kaulkin Ginsberg advised Nova on this transaction.
Based in Nova Scotia, Canada, Nova has seven Canadian offices and licenses in 24 US states. The company specializes in servicing clients in the telecommunication, banking and retail sectors, and has established a growing niche in government collections. Established as part of a regional credit bureau in 1956, Nova services some of the largest credit grantors in Canada. Its experienced management team is expected to continue the performance it has achieved to date. Nova Information Technologies Ltd., with similar ownership to Nova Collection Services Ltd., provides software development and systems servicing to Canadian companies.
Brian Greenberg, who directed the deal for Kaulkin Ginsberg, commented, “This deal should bring excellent opportunities to both companies. Our client and Nova’s founder, Ted Bos, can begin his gradual transition to retirement, while the Nova staff joins a larger organization and gains enhanced growth opportunities. As for AllianceOne, they’ve acquired a growing player in the Canadian market with offices throughout the country. They’ve also increased their calling capacity and should benefit from the favorable currency exchange rates and lower labor costs in Canada.”
AllianceOne’s Chairman and CEO, Bob Mauch, noted, “The marriage of AllianceOne and Nova is consistent with both our acquisition and Western Hemisphere call center growth strategy. Nova will not only continue to grow their domestic business, but will also provide services to US markets.” Terry Weikel, Senior Vice President of Corporate Development for AllianceOne, added that he is pleased to complete this acquisition with “such a well managed company”.
For AllianceOne, an active acquirer of collection agencies in the late 1990s, this marks its first acquisition since 2000, when it acquired Allied Credit Companies of Gig Harbor, Washington. While acquisition activity in the industry slowed in 2001, many industry observers have considered whether agencies are still sought after as acquisitions. The recent surge in activity, however, indicates that strategic and financial buyers alike still recognize the value in acquiring agencies of all sizes and locations. Other deals announced within the past 30 days include West Corporation’s (NASDAQ: WSTC) acquisition of Attention LLC and the acquisition by NCO Group (NASDAQ: NCOG) and NCO Portfolio Management (NASDAQ: NCPM) of GE Capital’s Great Lakes Collection Bureau and related purchased receivables, both of which were facilitated by Kaulkin Ginsberg. Kaulkin Ginsberg expects this steady pace of acquisitions to continue.
About Kaulkin Ginsberg Company
Kaulkin Ginsberg Company, a leading M&A advisor to the Outsourced Business Services sector, has managed more than 80 collection industry transactions with total values exceeding $2 billion. In addition to advising on acquisitions and divestitures, the firm has provided a gateway for those seeking a financial or strategic acquisition of a collection-related enterprise. The Kaulkin Ginsberg staff also conducts market research, consults on high-level projects, and publishes The Kaulkin Report(tm), generally considered the most comprehensive report on the state of the collection industry. CollectionIndustry.com, the leading on-line content provider to the credit and collection industry, is a sister company of Kaulkin Ginsberg. More at www.Kaulkin.com.
