Transcom divests German Credit Management Services operations for EUR 9.0 million to Tesch Group, a portfolio company of Avedon Capital Partners

Luxembourg, 13 December 2013 – Transcom today announced that the company has signed an agreement to divest its German Credit Management Services operations (CMS Germany) to Tesch Group, a portfolio company of Avedon Capital Partners, for €9.0 million on a cash and debt free basis. The consideration will be paid in cash at closing. The transaction is expected to close by the end of January 2014, subject to regulatory approval.

CMS Germany had a turnover of €9.0 million in 2012 and has approximately 120 employees. The divested operations are part of Transcom’s Credit Management Services business unit (CMS), which generated revenues amounting to €55.3 million in 2012.

During the year, Transcom’s Board of Directors has been evaluating a number of strategic alternatives for the company’s CMS business unit. Initially, the main alternative considered was a spin-off of the CMS business unit to Transcom’s shareholders through the distribution of new shares in the CMS business. However, since Transcom’s CMS units in various European countries operate as independent, autonomous entities, each unit is being assessed both on a standalone basis and – in some cases – as part of various possible business combinations. In the case of CMS Germany, the Board of Directors has concluded that the most beneficial option for Transcom’s shareholders is a sale as a standalone unit. The process of evaluating strategic alternatives for the remainder of the CMS business unit is progressing, and we will communicate further details as soon as a decision has been reached.

“This transaction is part of our efforts to strengthen Transcom’s position in our core business – outsourced customer care solutions (CRM). While early collections services, e.g. payment reminder calls, are an integrated part of our core CRM business, the business model in our CMS unit – contingent and legal debt collections – is entirely different”, commented Johan Eriksson, Transcom’s President and CEO.

For further information, please contact:

Johan Eriksson, President and CEO
Telephone +46 70 776 80 22

Pär Christiansen, CFO
Telephone +46 70 776 80 16

Stefan Pettersson, Head of Group Communications
Telephone +46 70 776 80 88