Firstsource Solutions on Thursday announced that it has entered into an agreement to acquire American Recovery Services, Inc.
Firstsource said the acquisition enhances its leadership in consumer debt management services by adding legal stage collections capabilities. The debt collections market is a significant part of the consumer credit ecosystem with evolving regulatory demands. These shared tenets add to the symmetry of this combination, the company added in press release.The cost of acquisition is $53 million including earnouts done through cash consideration.
American Recovery Services, Inc is a nationwide legal collections network headquartered in Southern California. The company provides legal collection services for over three decades through its nationwide partner network and in-house experts. The company's revenue for the 12 months ended 30 September 2021 was approximately $72.5 million.
Vipul Khanna, MD & CEO of Firstsource Solutions said, Firstsource is a leader in consumer debt receivables management and the acquisition of ARSI adds a topnotch legal network; we can now provide a broad platform and one-stop shop to large financial institutions and the burgeoning fintech market. We are delighted to welcome ARSI to the Firstsource family.
Tom Baxter, president and CEO of American Recovery Services Group said, Through the merger of our people and technologies, I earnestly believe Firstsource will offer its clients unparalleled service. As a new Firstsource company, we look forward to continuing our 36-year tradition of providing world-class legal network management capabilities to assist in the debt recovery process.
Firstsource Solutions is a global provider of business process management (BPM) services and an RP-Sanjiv Goenka Group company. On a consolidated basis, the company reported a 28% jump in net profit to Rs 135 crore on a 20.4% increase in net sales to Rs 1,418 crore in Q2 FY22 over Q2 FY21.
Shares of the IT company were trading 0.11% lower at Rs 182 on BSE.
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