Encore Capital Group Inc., the San Diego collector of defaulted credit card debt, said it agreed to buy 50.1 percent of the equity in Cabot Credit Management, a United Kingdom and Ireland-based consumer debt collection business for about $192 million.
Encore said it has the option to purchase the remaining interest in CCM over the next four to six years. The deal is expected to close in the third quarter.
Once completed, the acquisition will provide CCM access to more capital, enabling the company to purchase additional debt and expand into other asset categories, the companies said.
CCM purchased some 3.5 million individual consumer accounts last year with a face value of about $10 billion. It did about $260 million in revenue last year.
Shares of Encore Capital, traded under ECPG on Nasdaq, closed at $35.86, up 73 cents on May 30, giving it a market capitalization of $837 million.
— Mike Allen