NCO Group to Buy OSI for $325 Million

http://www.insidearm.com/news/00000748-nco-group-to-buy-osi-for-325-million/

NCO Group, the world’s largest accounts receivable management company, announced today it is purchasing the second-largest U.S. collector, Outsourcing Solutions, Inc., creating a combined firm with 29,000 employees in 140 offices in ten countries.

Horsham, Pa.-based NCO, will pay $325 million in cash for St. Louis-based OSI. NCO is a portfolio company of One Equity Partners, a private equity investment unit of JPMorgan Chase. NCO reported that One Equity will provide it with a portion of the funding for the acquisition of OSI. NCO expects to fund the remainder of the purchase price with borrowings under its senior credit facility.

NCO went private in November 2006 in a deal valued at $1.2 billion.

Michael J. Barrist, Chairman and CEO of NCO, stated in a release, "All of us at NCO are extremely excited about the opportunity to bring these two great companies together. Over the past several years both NCO and OSI have had tremendous success in transforming our business models to better meet the diverse needs of our respective client bases.”

Mike Ginsberg, CEO of ARM-industry consultant Kaulkin Ginsberg, told insideARM.com that the deal between the two giants was “not surprising,” adding, “NCO’s platform is perfect for adding some of the unique services that OSI offers that NCO does not provide. The combined company will still have plenty of room for growth.”