ARM Firm Gila Corp. Acquired by Private Equity Group

An Austin, Texas-based private equity firm announced yesterday that it had acquired Gila Corporation, a major player in the municipal and government debt collection sector through its Municipal Services Bureau (MSB) unit.

Owners Resource Group said in a press release that it worked with Gila’s management to facilitate the deal, the terms of which were not disclosed.

The transaction, which closed July 31, will see Gila’s senior management team stay in place, including current CEO Bruce Cummings.

“This relationship will be a significant positive for our employees and customers,” said Cummings. “With the full strength of ORG’s capital and resources behind us, we intend to accelerate our service offering to exceed the needs of our clients while maintaining the high standards of quality and customer service our clients have come to expect.”

“The Gila management team has built a leading company in the accounts receivables management space,” said Mark Green, Chairman of Owner Resource Group. “We believe the Company’s long track record of providing outstanding service to their customers in a highly ethical manner differentiates Gila from their competition and we look forward to supporting the Company’s continued growth.”

Gila, also based in Austin, is an accounts receivable management firm founded in 1991 that focuses on the government collection sector as well as the financial services market. Through MSB, the company works for more than 550 government clients in delinquent tax, fine and fee collection. Gila’s other unit, Gila Group, provides outsourced debt collection and payment processing services for financial institutions.

The company employs 400 people in Austin.