NCO Group Acquires Outsourcing Solutions, Inc.
HORSHAM, PA, 02/29/2008
- NCO Group, Inc. (“NCO” or the “Company”), a leading provider of business
process outsourcing, announced today the completion of its acquisition of
Outsourcing Solutions Inc. (“OSI”), also a leading provider of business process
outsourcing, primarily accounts receivable management services, for $325.0
million in cash, subject to certain post-closing adjustments.
NCO funded a portion of the acquisition with a $139.0 million Add-on Term
Loan B to its senior credit facility. Additionally, One Equity Partners (“OEP”),
NCO management and other co-investors provided NCO with the remainder of the
funding for the acquisition through additional equity investments. NCO is a
portfolio company of OEP, a private equity investment fund.
The acquisition is currently expected to be accretive to NCO’s earnings in
2008 and beyond. The combined company will have over 29,000 employees operating
in 10 countries.
Commenting on the transaction, Michael J. Barrist, Chairman and Chief
Executive Officer of NCO, said, “We are excited at the opportunities created by
this acquisition, which will better enable us to service our markets. The
combined organization will be uniquely positioned to offer our customers a host
of new and expanded products along with unparalleled access to advanced
technologies, industry experience, and global service capabilities.”
About NCO Group, Inc.
NCO Group, Inc. is a global provider of business process outsourcing
services, primarily focused on accounts receivable management and customer
relationship management. NCO provides services through over 100 offices in the
United States, Canada, the Philippines, Panama, the Caribbean, India, the United
Kingdom, and Australia.
For further information contact:
Certain statements in this press release, including, without limitation,
statements as to the expected effects of the acquisition of OSI, including
results of operations, statements as to NCO’s managements’ beliefs, expectations
or opinions, and all other statements in this press release, other than
historical facts, are forward-looking statements, as such term is defined in the
Securities Exchange Act of 1934, which are intended to be covered by the safe
harbors created thereby. Forward-looking statements are subject to risks and
uncertainties, are subject to change at any time and may be affected by various
factors that may cause actual results to differ materially from the expected or
planned results. In addition to the factors discussed above, certain other
factors, including without limitation, the risk that NCO will not be able to
implement its business strategy as and when planned, the risk that NCO will not
be able to realize operating efficiencies in the integration of its
acquisitions, risks related to union organizing efforts at the Company's
facilities, risks related to past and possible future terrorists attacks, risks
related to the economy, the risk that NCO will not be able to improve margins,
risks relating to growth and acquisitions, risks related to fluctuations in
quarterly operating results, risks related to the timing of contracts and risks
related to international operations and other risks detailed from time to time
in NCO’s filings with the Securities and Exchange Commission, including the
Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2007 and
September 30, 2007, respectively, can cause actual results and developments to
be materially different from those expressed or implied by such forward-looking
statements. The companies disclaim any intent or obligation to publicly update
or revise any forward-looking statements, regardless of whether new information
becomes available, future developments occur or otherwise.