Investcorp Buys Into TDX Group

TDX Group, a UK debt collection advisor, has sold a 40% stake to Bahrain-based investment group Investcorp for £28m (US$42m).

Nottinghamshire-based TDX was founded five years ago by executives at Capital One, HSBC and GE. Working with creditors, purchasers and collection agencies, TDX provides data including sale market pricing, bid data, segment and account level performance profiles and collection agency performance.

At the end of July, TDX estimated that £9bn was set to flow into debt solutions during 2008.

Hazem Ben-Gacem, a London-based managing director of Investcorp, told the Financial Times that his firm expected £37bn of unsecured delinquent debt to be outstanding in the UK, as well as £4.5bn of credit card debts and £10.5bn of unsecured personal loans in default.

Investcorp was not immediately available for comment.

Investcorp’s other European technology investments, made through its dedicated Investcorp Technology Partners arm, include Moneybookers, a £70.6m secondary buyout in early 2007; Sophos, a UK anti-virus software business, bought in October of this year; and Germany’s circuit board business Mania Technologie.

In November, Investcorp partnered with Barclays Private Equity to buy Italian vending machine manufacturer N&W Global Vending for €800m, of which €600m was provided by a banking consortium including Barclays, BNP Paribas, Calyon, Bank of Ireland, ING, Intesa San Paolo, Natixis, ICG and Societe Generale.

The firm’s other European investments include Apcoa, a German car park manager sold to French investor Eurazeo for €885m in February 2007; and German temporary staffing agency Auctus Management, acquired for €250m in August 2006.

Other private equity firms to make bets on debt collection busineses include Swedish investor Altor’s acquisition of Nordic group Lindorff; pan-European private equity firm IK’s acquisition of Intrum Justitia; Advent International’s investment in Poland’s Ultimo; and Palamon’s buyout of Italian debt collection business Si Collection.

Source: Thomson Merger News