Intrum AB (publ) (“Intrum”) has agreed to acquire two consumer loan servicing platforms from European fund manager Arrow Global Group, along with 50 per cent of Arrow UK’s back book consumer portfolios, subject to customary closing conditions. The transaction, expected to be completed in the second quarter of 2023, means an important step towards becoming the market-leading credit management servicer in the UK.
The acquisition includes outsourcing contracts with major financial institutions as well as the continued servicing of Arrow’s UK unsecured consumer portfolios. It marks a significant stage in Intrum’s UK growth plans, following the company’s expansion in third-party servicing over the recent years.
“This transaction fits perfectly into our global investment approach and will accelerate our market position in the UK, which is one of Intrum’s target growth markets together with France and Germany. The acquisition adds key assets including several significant long-term contracts and two strong and renowned consumer loan servicing units to our UK franchise, underlining both our servicing and investment business, while diversifying our commercial footprint in this key market. Also, the acquisition brings us even closer to our clients, enabling us to accelerate the commercial development within the region”, said Andrés Rubio, Acting President & CEO of Intrum.
“The agreement further cements our commitment to third-party servicing in the UK and underlines our growth ambitions in this market. Intrum’s customer-centric approach, combined with our scale, track record and sector expertise, means we are ideally placed to acquire the two platforms. We believe the combined group presents a stronger proposition to prospective clients and our existing partners”, said Anette Willumsen, Managing Director CMS Sales & Service Development and Markets.
The acquisition consists of a £36.5M consideration subject to customary closing mechanism for two consumer loan servicing platforms, the Capquest platform for servicing unsecured consumer loans and the Mars UK platform for servicing residential consumer mortgage loans, along with a £121.25M investment for 50 per cent of Arrow’s UK unsecured consumer portfolios. In total, the acquisition includes approximately 800 roles, as well as two Glasgow servicing centres and premises in Manchester.
The deal is subject to approval by the Financial Conduct Authority, with expected completion in the second quarter of 2023. The transaction will have no effect on Intrum’s leverage ratio target.
For further information, please contact:
Kristin Andersson, Global Media Relations Director, Mature & Emerging Markets
+46 (0) 705 85 78 18
kristin.andersson@intrum.com
About Arrow Global Group
Established in 2005, Arrow Global is a leading vertically integrated European fund manager specialising in credit and real estate. It identifies, acquires, and manages portfolios from and on behalf of financial institutions, such as banks, institutional fund investors and specialist lenders.
Arrow’s fund management business has total Funds Under Management of €5.3 billion (as at Q2 2022) and over €70 billion of asset servicing AUM.
Arrow is a regulated business in all of its European markets.
www.arrowglobal.net