Credit Clear is pleased to announce it has entered into a binding agreement to purchase ARC Europe Ltd (‘ARC’), a well-established, UK-based debt collection agency. Established in 2001, ARC has trusted partnerships across financial services, health and leisure, insurance, and utility sectors. ARC’s long-standing customer base in the UK, with access to European markets, provides a strong foundation for Credit Clear’s geographic expansion.
The acquisition is expected to be earnings accretive in the first year of ownership with significant opportunity to replicate Credit Clear’s past success with the 2022 ARMA acquisition, by overlaying its digital solution to drive operating leverage, client growth and up-sell opportunities via its digital collections offering.
Credit Clear expects the acquisition of ARC to deliver operational efficiencies and accelerate growth whilst providing the ability to cross-sell Credit Clear’s digital offering to ARC customers. Additionally, Credit Clear intends to unlock further value by growing its share of wallet with existing clients, specifically large telecommunications and utilities clients with operations in the UK and access to European markets.
ARC’s co-founders intend to continue in their existing roles to assist with the successful integration of ARC and Credit Clear.
Credit Clear CEO and MD, Andrew Smith, said: “The ARC acquisition mirrors our successful Australian growth model, demonstrated by the acquisition of ARMA Group nearly four years ago. By integrating ARC Europe’s operations with Credit Clear’s market-leading technology platform, we aim to enhance efficiency via the scalability of our digital-first model and drive superior outcomes in the UK and European collections markets. We welcome the significant investment step up and conviction of our Chair, Paul Dwyer and the institutional support for our strategy, and we look forward to delivering value for all shareholders.”
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