Intrum Justitia Acquires Nordic Debt Collection Operations from Aktiv Kapital

STOCKHOLM, Sweden — Intrum Justitia is acquiring Aktiv Kapital’s Nordic operations focused on credit management services for external clients. The acquired operations employ some 150 people in Norway, Sweden and Finland and are expected to generate revenues of approximately NOK 200 M ($34.2 million) for 2010. The acquisition strengthens Intrum Justitia’s market position, particularly in the Norwegian market. The company’s market-leading position in Finland and Sweden is further enhanced.

“The acquisition of Aktiv Kapital’s credit management operations is an important step in the right direction for Intrum Justitia with regard to our strategy of holding a market-leading position both in the Nordic region and throughout Europe. The acquisition particularly strengthens our position in the Norwegian market, where we are currently relatively small. By increasing our market share, making us one of the three largest players in the Norwegian market, we are able to strengthen our offering to major customers, broaden our customer base and improve our opportunities to successfully acquire Purchased Debt portfolios. I am very pleased that we are able to carry out this transaction,” says Lars Wollung, President and CEO of Intrum Justitia.

"The third party operation of Aktiv Kapital shows good results in Sweden as well as Norway and Finland. This transaction confirms our ambition to increase the focus on creating value when it comes to investments and collections of our own portfolios. Investments in portfolios of purchased debt in and outside of the Nordic Region continues to be the main focus of Aktiv Kapital”, says Erik Øyno, President and CEO of Aktiv Kapital.

“With this acquisition, we are investing in broadening our customer base in Norway, especially in the telecom and bank sectors, which are two of Intrum Justitia’s prioritized customer segments. In Finland, it broadens our customer base to include the public sector – one that Intrum Justitia considers attractive. The strengthened market position in Norway, combined with our additionally enhanced position as a market leader in Finland and Sweden, makes us clearly one of the largest players in the Nordic region, which is one of our key objectives,” says Rickard Westlund, Regional Managing Director, Northern Europe. The purchase sum is based on a net-debt-free valuation of NOK 375 M ($64.2 million), entailing valuation multiples below Intrum Justitia’s current valuation. Aktiv Kapital’s Nordic operations will be integrated into Intrum Justitia’s Nordic organization during 2011.

Aktiv Kapital’s operations employ a total of approximately 150 people in Sweden, Norway and Finland and are expected to generate sales of NOK 200 M for 2010 with an operating margin of 19 percent. The acquisition will contribute positively to Intrum Justitia’s earnings per share from the outset and, taking integration costs into account, there is expected to be a slight positive increase in earnings per share already the first year. The operations will be consolidated during 2011. The transaction is conditional on the approval of the Norwegian Competition Authority.

Intrum Justitia is Europe’s leading Credit Management Services (CMS) group and offers services designed to measurably improve clients’ cash flows and long-term profitability. Intrum Justitia was founded in 1923, has around 3,400 employees in 22 countries and revenues of approximately SEK 4.1 billion ($617 million) in 2009. Intrum Justitia AB is listed on NASDAQ OMX Stockholm since 2002. For further information, please visit www.intrum.com