Reuters – Encore Capital to Buy Asset Acceptance Capital for $200M

Debt collector Encore Capital Group Inc. has agreed to buy Asset Acceptance Capital Corp. for $200 million to strengthen its position in a highly fragmented industry, Reuters reported. Encore’s offer of $6.50 per share represents a premium of 13 percent to Asset Acceptance’s Tuesday closing price. Warren, Michigan-based Asset Acceptance buys individual consumer accounts, including credit card, telecommunications, and consumer loans.

(Reuters) – Debt collector Encore Capital Group Inc (ECPG.O) has agreed to buy Asset Acceptance Capital Corp (AACC.O) for $200 million to strengthen its position in a highly fragmented industry.

Encore’s offer of $6.50 per share represents a premium of 13 percent to Asset Acceptance’s Tuesday closing price.

Warren, Michigan-based Asset Acceptance buys individual consumer accounts, including credit card, telecommunications, and consumer loans.

Its shareholders will have the option to receive their consideration in cash or Encore stock or a combination of both.

Encore bought Propel Financial, a tax lien company, for $187 million in May last year.

Encore shares closed at $30.07 on Tuesday on the Nasdaq.

(Reporting by Ashutosh Pandey in Bangalore; Editing by Saumyadeb Chakrabarty)