EGS to Sell Part of Accounts Receivable Management to Platinum Equity
July 17, 2014
To increase focus on its core business segments and services, Expert Global Solutions (EGS) is selling certain segments of its Accounts Receivable Management (ARM (News - Alert)) business to Platinum Equity, a Los Angeles-based private equity firm specializing in business operations. The dollar value of the transaction has not been disclosed yet. The sale of Transworld Systems, Inc. will include Transworld Systems, Education, Attorney Network, Healthcare Bad Debt, Government and U.S.-based Third Party Collections. Post acquisition, the business is expected to named as Transworld Systems, Inc. (TSI (News - Alert)).
Citing the sale as win-win for both the companies, Bob Segert, EGS president and CEO said in a statement "As a result of the sale of these businesses, EGS will be able to sharpen its focus on our key business segments, services and strengths, specifically CRM and First Party Collections. Platinum Equity has been a great partner throughout this process, and we are confident these businesses will continue to thrive under their ownership."
Platinum Equity partner Jacob Kotzubei, who led the Platinum Equity team for this acquisition, quoted multiple reasons that makes the deal a great business opportunity for the company . "The business has great leadership, powerful proprietary systems and a strong culture of compliance," said Mr. Kotzubei. "We believe there is a great opportunity to grow the business and maintain the highest standards of excellence by continuing to invest in infrastructure and technology." Mr. Kotzubei said Platinum Equity is highly experienced with acquiring segments of existing companies, often known as corporate "carve outs," and the firm's operations team has developed a comprehensive plan to ensure a seamless transition.
Mr. Segert expects business to continue as usual, with very minimal impact to clients, customers and employees. The transaction is expected to be completed within the next several months, subject to satisfaction of customary closing conditions. Credit Suisse Securities (USA) LLC acted as financial adviser to EGS.
Edited by Maurice Nagle
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