Nordic Capital Fund VIII-owned Lindorff and Intrum Justitia are to combine to create a leading provider of credit management services (CMS).
The combination is expected to provide material benefits for all stakeholders and create significant shareholder value through annual cost synergies estimated at SEK0.8 billion (EUR80 million) and significant further revenue synergies.
Based on Intrum Justitia’s closing share price at Nasdaq Stockholm as of 11 November 2016, the transaction values Lindorff at an enterprise value of SEK40.5 billion (EUR 4.1 billion).
Nordic Capital Fund VIII will become the largest indirect shareholder controlling approximately 45.5 per cent of the shares in the combined entity.
The combination of Intrum Justitia and Lindorff creates a CMS company with net revenues of SEK12.2 billion (EUR1.3 billion), local presence in 23 markets across Europe and a team of more than 8,000 professional, committed and caring employees.
“We are really excited about this combination of the two longest standing credit management companies in Europe and recognise the strength of the companies and the opportunities in the industry. Given the growth trajectory of both businesses and the benefits that will come from the combination, Nordic Capital looks forward to continue supporting the combined business as a listed company and sees significant potential for further value creation,” says Kristoffer Melinder, managing partner, NC Advisory, adviser to the Nordic Capital Funds.
