Portfolio Recovery Associates – PRAA – Acquires Consumer Bankruptcy Claims From NCM
Portfolio Recovery Associates, Inc. (Nasdaq:PRAA), a financial and business services company, announced a $115.3 million acquisition of certain assets from National Capital Management, LLC (NCM). These assets include secured and unsecured consumer bankruptcy accounts and operating assets associated with the underwriting and collection of secured bankruptcy claims. The transaction also includes the hiring of certain NCM employees.
“Since PRA began to diversify its business model in 2004 by moving into bankruptcy debt buying and claims processing, we’ve grown a bankruptcy business that has become a significant contributor to our bottom line. This acquisition provides further diversification by expanding PRA’s bankruptcy business to include larger secured claims and other assets,” said Steve Fredrickson, chairman, president and chief executive officer, PRA.
“NCM has built an impressive business over the years and we are very excited about the purchase,” said Mike Petit, president, Bankruptcy Services, PRA.
During the first nine months of this year, PRA generated $263.1 million in cash collections from its portfolios of purchased bankruptcy accounts and invested $151.6 million in new, largely-unsecured bankruptcy claims, representing 45% of PRA’s total consumer debt buying business this year.
About Portfolio Recovery Associates – PRAA
Portfolio Recovery Associates, Inc. (PRAA) is a financial and business services company. A market leader in the consumer debt purchase and collection industry, PRA has a longstanding culture of compliance, engaging collaboratively with its customers to create realistic, affordable repayment plans.
PRAA provides a broad range of business services to local government, auto lenders, law enforcement, institutional investors, manufacturers and retailers, and U.K. banks and creditors. PRAA was recognized as one of Fortune’s 100 Fastest Growing Companies in 2012. The company also was named one of Forbes’ Top 25 Best Small Companies in America in 2012, and has been annually ranked as one of Forbes’ 100 Best Small Companies since 2007.
PRAA is engaged in the detection, collection and processing of both unpaid and normal-course accounts receivable originally owed to credit grantors, governments, retailers and others. The Company’s primary business is the purchase, collection and management of portfolios of defaulted consumer receivables. These are the unpaid obligations of individuals to credit originators, which include banks, credit unions, consumer and auto finance companies and retail merchants. It also provides fee-based services, including vehicle location, skip tracing and collateral recovery services for auto lenders, governments and law enforcement via PRA Location Services, LLC (PLS), revenue administration, audit and debt discovery/recovery services for local government entities through PRA Government Services, LLC and MuniServices, LLC (collectively PRA GS) and class action claims recovery services and related payment processing via Claims Compensation Bureau, LLC (CCB).
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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