mynth
09/2014

CAPQUEST acquired by ARROW GLOBAL GROUP

UNITED KINGDOM Specialty Finance EV 100M - 350M GBP

Context

The acquisition of Capquest by Arrow Global brings together two complementary businesses, creating a larger, integrated group with enhanced capabilities in debt purchase and management. The combination of Capquest's in-house servicing platform and state-of-the-art collections system with Arrow Global's leadership in data enhancement, analytics, and supply chain management is expected to create a strong company, well-positioned to prosper in the current environment. The acquisition also adds a significant portfolio of assets at attractive returns, supporting Arrow Global's broad range of origination sources and extending its reach into new asset classes. The integration of the two businesses is expected to enhance the quality of the combined company's offering to customers and clients, while also positioning Arrow Global as a leading debt purchaser and manager in Europe.

CAPQUEST, which reported an EBITDA margin of in 2014, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the Financial Services sector (12.4x).

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Target

Capquest is a leading credit solutions business in the UK, specializing in debt collection and credit management. The company operates an in-house servicing platform and utilizes a state-of-the-art collections system, allowing for efficient and effective debt recovery. With a strong reputation for compliance and socially-responsible practices, Capquest has established itself as a trusted partner in the debt purchase and management industry. The company's expertise in regulated environments and understanding of customer needs have contributed to its success, making it an attractive partner for other industry players. By leveraging its sophisticated collection capabilities and customer-focused approach, Capquest has built a robust business model that generates revenue through debt recovery and management services.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2014
2013

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REFERENCES

Valuation range: EV 100M - 350M GBP

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CAPQUEST by ARROW GLOBAL GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: capquest

Acquirer: arrow global group