Arrow Global Completes Acquisition Of InVesting BV

LONDON (Alliance News) - Arrow Global Group PLC on Wednesday said it completed the acquisition of ...

Alliance News 4 May, 2016 | 10:41AM
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LONDON (Alliance News) - Arrow Global Group PLC on Wednesday said it completed the acquisition of InVesting BV, a consumer debt purchaser and collections provider with operations in the Netherlands and Belgium, for an enterprise value of EUR100 million, after winning approval from authorities.

Following the completion of the acquisition, which was announced in April, Arrow expects capital-light asset management operations to account for around 25% of group revenue on a pro forma full-year basis.

Arrow expects the deal to boost its earnings per share and return on equity from 2017. It will be neutral to earnings per share in 2016.

In addition, Arrow said it closed its offering of EUR230 million of seven-year floating rate notes, bearing an interest rate of Euribor plus 4.75% per year.

Proceeds from the offering will be used to repay money due under an existing bank credit facility, fund the acquisition of InVesting, and boost growth of the existing business. Arrow said the notes provide further balance sheet liquidity, reduce its weighted average cost of debt and extend average debt maturity to 5.4 years.

Shares in Arrow were up 0.4% at 263.14 pence Wednesday.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright 2016 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Arrow Global Group PLC 212.50 GBX -4.06 -
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