(Reuters) Buyout group Permira has agreed to buy German debt collection firm GFKL from peer Advent, it said on Monday, in a deal people familiar with the matter said was worth 600 million euros ($684 million).
Permira declined to comment on the financial terms.
GFKL manages receivables worth 16.6 billion euros ($18.9 billion) for clients from industries including banks, insurance companies, online retailers and telecommunications companies, Permira said in a statement.
Permira said small- and medium-sized businesses were increasingly outsourcing debt collection and the rise of e-commerce was also driving the industry’s growth.
“The debt collection market in Germany is very fragmented which creates numerous consolidation opportunities,” Permira added.
Advent sought to exit GFKL in January and asked Goldman Sachs to explore possible options including a sale, two sources familiar with the matter told Reuters at the time.
GFKL’s sales rose to 244 million euros in 2014 from 196 million euros in 2013.