Source: Intrum Justitia
Intrum Justitia (STO:IJ) strengthens its market position in Sweden by acquiring Nice Invest Nordic AB, which focuses on investing in purchased debt from customers in post-order and e-trading and in financial receivables arising in such operations. The acquisition entails an existing portfolio, as well as an agreement covering forward flow contracts. The total purchase price amounts to around SEK 290 M.
"With the acquisition of Nice Invest Nordic, we are making a substantial investment in purchased debt in Sweden and Finland. Nice Invest Nordic's customers are mainly post-order and e-trading companies, a segment in which we haven't been particularly strong previously. We are now strengthening our position in the e-trading segment considerably. In addition, we are increasing our revenues in Purchased Debt, which is an important objective for us," says Rickard Westlund, Regional Managing Director, Northern Europe.
The acquisition entails Intrum Justitia acquiring Nice Invest Nordic AB's existing purchased debt portfolios for SEK 175 M. Intrum Justitia will also receive exclusive agreements for monthly purchases of forward flows (credit that has been written off or passed maturity) for a total capital sum of about SEK 915 M over the next five years. The agreements involve investments in Sweden and Finland.
"Activity in the market for investment in purchased debt portfolios has increased towards the end of 2010 and we believe there will continue to be favorable opportunities for attractive investments over the next few years. Our objective is to increase our rate of investment in this area and the acquisition of Nice Invest Nordic is naturally a good indication that we are on the right path," says Lars Wollung, President and CEO of Intrum Justitia AB.
The purchase sum totals approximately SEK 290 M, covering existing portfolios and an advance payment for future monthly investments. The complete portfolio has been analyzed and assessed in accordance with Intrum Justitia's customary principles and return requirements. The acquisition will be consolidated from December 31, 2010.