Heritage Global Inc. has acquired National Loan Exchange Inc. (NLEX), the largest volume broker of charged-off receivables in the U.S. and Canada.
NLEX will operate as a wholly owned division of San Diego-based Heritage Global (OTCQB: HGBL; CSE: HGP), expanding and diversifying its distressed asset offerings. Before the transaction NLEX had been operating exclusively as a broker/agent.
Now, NLEX, based in Edwardsville, Ill., also will be acting as a principal, capitalizing upon Heritage Globals human and financial resources. It is expected that all NLEX employees will remain with the organization. Additional terms of the agreement were not disclosed.
"Since the introduction of NLEXs auction platform in 2000, it has generated in excess of $150 billion face value sales covering more than 5,000 dispositions of performing, non-performing and charged-off assets," said Heritage Global Managing Partner Ross Dove. "Adding a distressed financial assets division to our auction and appraisal capabilities is a logical progression for Heritage Global. We expect NLEXs top- and bottom-line financial contributions to enhance our overall operating results and be a source of consistent, sustainable earnings.
Heritage Global is involved in distressed and surplus asset valuations and monetization transactions. The firm focuses on identifying, valuing, acquiring and monetizing distressed and surplus assets in 25 global manufacturing and technology sectors. It specializes in acting both as an advisor as well as principal in the acquisition and monetization of turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, accounts receivable portfolios and related intellectual property.
National Loan Exchange President David Ludwig added, "Teaming with Heritage Global is an excellent fit as we both have similar mindsets regarding the valuation and disposition of distressed assets. The addition of our companys financial focus and experience to Heritages wealth of surplus capital asset expertise is a clear win-win for our respective customers and also provides both organizations with numerous operating synergies to exploit."
NLEX has been a pioneer in distressed assets dating since the 1980s when its parent company created an open market for the Resolution Trust Company assets. For more than two decades they have also been known as a top broker of charged-off receivables. The company's Electronic Auction Platform is widely considered to have revolutionized the market for charged-off assets by creating more liquidity for lenders.
Along with sale services, through its affiliate Solutions Management Group International LLC, NLEX helps clients boost portfolio presale performance by utilizing a network of the worlds premier service providers.