Encore Capital Group, the San Diego based collector of defaulted credit card debt, acquired one company and has an agreement to sell another business, the company said May 9.

Encore is buying Propel Financial Services LLC, which works with property owners who are delinquent in paying taxes to restructure the debts, for $187 million. Encore said it used a new $160 million credit line and existing cash to buy the company that is based in San Antonio. It expects the purchase to be accretive to 2012 earnings.

The company also announced it’s reached an agreement in principle on the sale of its bankruptcy servicing subsidiary, Ascension Capital Group, to a company “with deep expertise in the bankruptcy space and a strong technology platform.”

In other news, Encore reported first quarter net income of $11.4 million, compared with net income of $13.7 million for the same quarter last year.

Gross collections in the first quarter totaled $231 million, up 21 percent from the like quarter of 2011. In the first quarter, Encore paid $130.5 million to buy $2.9 billion of face value debt, mainly from banks, compared with paying $90.7 million for $2.9 billion in face value debt in the like quarter of last year.