Collection House (ASX:CLH) has today announced it has reached a binding agreement to acquire the entire Purchase Debt Ledger (PDL) and other selected assets (including plant & equipment, intellectual property and the Sydney lease) from ACM Group.
The total cash consideration will be $40.3 million with the purchase expected to settle by the end of March.
The acquisition will be funded from existing cash reserves and a $50 million facility expansion from Collection House's banking partners.
The purchase will require additional headcount and new employment contracts will be offered to selected Sydney-based employees of ACM.
Collection House says ACM will provide it with useful diversification into the telecommunications sector, as well as increasing our volumes in the banking and finance sector and our capacity in Sydney.
Shares in Collection House (ASX:CLH) are trading 2.56 per cent lower at $1.33.