PR - Transcom Acquires Austria?s Largest Collection Agency

Transcom WorldWide S.A., the European CRM and debt collections specialist, Monday announced that it has acquired 100% of IS Inkasso Service Group, the largest debt collection agency in Austria, for a total cash consideration of $52.9 million. IS Inkasso reported revenues of around $23 million in fiscal year 2006, and the purchase price is based on a valuation of approximately 7 times EBIT.

The transaction will be funded out of the credit facility that Transcom established in the first half of 2007, and IS Inkasso’s operations will be consolidated from September 1, 2007. Senior management personnel have signed long-term contracts to remain with the company.

Founded in 1975, IS Inkasso has grown to become the largest outsourced debt collection company in Austria and currently employs 130 people. The privately owned company is headquartered in Linz, Austria and is also present in Germany, Switzerland, Slovenia, Croatia and the Czech Republic. IS Inkasso provides a wide range of services, including legal debt collection, field-based collection, investigation and credit checks. It provides these services to a diverse client base and has recently developed collections services for clients in Eastern Europe from its Austrian operations.

Keith Russell, President and Chief Executive Officer of Transcom, said, “We are pleased to announce this exciting development for Transcom. This deal is perfectly in line with our longterm strategy of enhancing group margins and further consolidates our position as one of the leading players in the European debt collection market. The acquisition provides us with a very strong foothold in Central Europe, enabling us to strengthen our position within the mature markets in the region as well as to further develop our CMS business in the fast-growing economies of Eastern Europe.”

Transcom is based in Luxembourg and employs around 16,000 in 72 offices in Europe and North and South America.