Debt-buying giant PRA Group Inc. announced Wednesday the completion of its public tender offer to purchase shares of Warsaw, Poland-based DTP S.A., a mid-size debt buyer and collection agency active in Poland. 

More than 99% of DTP’s shares had been tendered at approximately $1.26 per share as of Tuesday for an aggregate purchase price of approximately $45 million. PRA Group plans to purchase the remaining shares of DTP through Polish regulatory procedures and will subsequently own 100% of the firm. PRA Group, based in Norfolk, Va., then will initiate the process to withdraw DTP’s shares from public trading and delist the company from the Warsaw Stock Exchange. "The DTP acquisition further strengthens PRA Group’s position within the competitive marketplace and provides a fully integrated platform for continued growth in the Polish market,” said Steve Fredrickson, chairman and CEO of PRA Group. “This acquisition will allow us to build on each company’s strengths, share best practices, achieve greater operational efficiencies and establish PRA as a leading purchaser in Poland.”
 

PRA Group’s most recently released financial results reported fourth-quarter drops in both revenue and income, along with mixed news for cash collections. Adjusted total revenue fell nearly 6% in the quarter to $236.7 million. Net income dropped 13% in the quarter to $41 million. The pace of PRA Group’s expenditures on finance receivables slowed in the quarter. Out of $225.9 million in spending, approximately $141 million went to the Americas, while Europe's purchases amounted to more than $84 million. Both figures were lower than year-ago levels. Cash collection source figures for the quarter were mixed, with core business collections climbing by $23 million, but insolvency-related collections falling $28 million. PRA Group’s CEO Steve Fredrickson kept an optimistic tone about the fourth quarter results. In February he said that once the supply of receivables in the U.S. begins to increase, the company will be in a good spot to pick up market share through moves such as the acquisition of bankrupt-account processor Recovery Management Systems Corporation. Market growth in Europe and South America also are being counted on to sustain the company as it waits for an improved U.S. market.

 

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