Lancashire-based debt management group Fairpoint has expanded its operations further after aquiring another company in a £3m deal.
The Adlington-based group is one of the UK’s leading providers of consumer professional services including debt solutions and legal services.
Now it has announced the acquisition of Bournemouth-based Debt Line Topco Limited.
Debt Line is a debt solutions provider specialising in the provision of debt management plans (DMP’s), with more than 9,000 plans under its management.
The move represents the third DMP acquisition completed by the Fairpoint Group this year.
Chris Moat, Fairpoint’s Chief Executive Officer, said: “We are pleased to have completed the acquisition of Debt Line, which represents further progress in line with the Group’s consolidation strategy in the debt solutions market.
“This acquisition now brings our cases under management to almost 29,000 and, as planned, represents substantial growth over our position at the start of this year.”
Fairpoint now has 15,688 cases under its management.
The group said management expectations for the financial year remain unchanged. The acquisition of Debt Line will be satisfied by a cash consideration of £3 million, payable at completion.
In the financial year ended 31 March 2014, Debt Line generated consolidated revenues of £5.1 million.
Profit before tax, adjusted to eliminate non-recurring items and to reflect the Group’s accounting practices, was £900,000.
The Bournemouth company reported consolidated gross assets of £6.4 million as at 31 March 2014.
The Group expects to incur exceptional transactional costs of £200,000 and restructuring costs of up to £1.1 million associated with this acquisition in the second half of 2014.
Earlier this year Fairpoint swooped for consumer law firm Simpson Millar in a deal worth up to £15m. It agreed to pay an initial £9 million payable in cash and shares, along with a further earn-out consideration of up to £6million.