Transaction Capital buys Recoveries Corporation
Transaction Capital has entered the Australian debt recovery market by acquiring Recoveries Corporation for A$43m. The deal, which was subject to regulatory approval, would be funded from the company’s own cash resources, Transaction Capital said in a statement on Monday. Founded in 1991 in Melbourne, Recoveries Corporations’ services include debt recovery solutions, insurance claims recoveries, customer services and litigation management services. Transaction Capital said it believed that on a standalone basis, Recoveries Corporation was a high-quality business generating predictable earnings with high-cash conversion rates and strong organic growth prospects from a blue-chip client base. "This transaction provides Transaction Capital with a strong entry point into the Australian market and the opportunity to expand geographically into a developed, English-speaking economy," CE David Hurwitz said. "Transaction Capital will thus diversify risk as it earns hard currency based returns...
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