United Recovery Systems, which is backed by the Audax Group, has acquired the businesses of AID Associates Inc., which runs collection services companies Plaza Associates and A.C.B. American. Houston-based United Recovery Systems provides a third-party contingency debt collection services for credit card companies, auto loan companies and retail companies. Terms were not released. Audax bought United Recovery in 2008.
Audax Group announced its portfolio company, United Recovery Systems, L.P. (“URS”), has acquired the businesses of AID Associates, Inc. d/b/a Plaza Associates (“Plaza”) and A.C.B. American, Inc. (“ACB”). Plaza and ACB are providers of collection services with offices in New York and Kentucky, as well as a call center in India. Plaza and ACB serve clients in the late-stage credit card and auto loan industries and also serve the healthcare industry with both first and third party collection services. This is the first add-on acquisition for URS, which Audax Group acquired in December 2008. Headquartered in Houston, Texas, URS is a provider of third party contingency debt collection services, specializing in the collection of early-stage pre-charge off and post-charge off receivables for the credit card, retail, and auto loan industries. URS formed a new subsidiary, Plaza Recovery, Inc., to acquire the businesses.
“URS is a leading contingency debt collection provider with a stable customer base in a fragmented industry. The Plaza/ACB acquisition expands URS’ operations internationally and into the healthcare and late-stage credit card end markets. We will continue to look for strategic add-on acquisitions that complement URS’ industry-leading service offering.”
Young Lee, Managing Director of Audax Group, said “URS is a leading contingency debt collection provider with a stable customer base in a fragmented industry. The Plaza/ACB acquisition expands URS’ operations internationally and into the healthcare and late-stage credit card end markets. We will continue to look for strategic add-on acquisitions that complement URS’ industry-leading service offering.”
Douglas Schultz, CEO of URS, said “This transaction is an exciting development for our company. We have diversified URS’ end markets and customer base, while providing Plaza and ACB with the analytics and processes to make their operations more streamlined and efficient.”
Paul Brennan, current CEO of Plaza Associates, will remain with the new company and continue to oversee collections in the New York office. Tony Faeth, currently President of ACB, will also remain with the company and continue to oversee collections in the Kentucky office.
Flock Advisors advised Plaza.
ABOUT AUDAX GROUP
Audax Group, founded in 1999, is a leading investor in lower-middle market companies. With offices in Boston and New York, Audax manages in excess of $4.8 billion of equity, mezzanine debt, and senior loan capital.