Asta Funding Announces Acquisition of Option Card, LLC
biz.yahoo.com
Monday March 7, 8:31 am ET
- Key Components of Acquisition Include $197 Million of Distressed Consumer Receivables, Software Technology and Denver, CO Facility -
- Purchase Price is Approximately $13.5 Million -
- Total Portfolio Purchases Now Exceed $715 Million For the Quarter -
- Conference Call Today at 2:00 pm EST
ENGLEWOOD CLIFFS, N.J., March 7 /PRNewswire-FirstCall/ -- Asta Funding, Inc., a leading consumer receivable asset management and liquidation company, today reported the acquisition of Option Card, LLC by a wholly owned subsidiary of Asta Funding, Inc.
Benefits accruing to the Company from the acquisition of Option Card, LLC, a Denver-based consumer debt buyer and debt management company, include portfolios of distressed consumer receivable debt of approximately $197 million that consist of paying accounts, accounts already within a legal network, and non paying accounts, a facility in Denver with two experienced managers in debt buying and debt management, with whom the Company has had a successful business relationship, an established legal network used by Option Card, LLC, and a computer software system that has beneficial features that will be incorporated into the Company's existing computer system, all of which were acquired for approximately $13.5 million.
In addition, the acquisition brings the Company the right to purchase a small monthly forward flow of high quality distressed consumer receivables with liquidation rates in line with the Company's typical portfolio buys, from a new relationship with a major financial institution.
Mr. Gary Stern, CEO of Asta, stated, "We are very excited with the purchase of Option Card, LLC. We view the acquisition as a $197 million portfolio purchase of consumer receivables at an attractive price with synergistic benefits to our existing business. We are also adding a facility with two seasoned managers with experience in debt buying and debt management who can be utilized to help execute on our business model and strengthen our already strong team. Furthermore, its excellent legal network will enhance our own well established legal network. We will be able to operate this office with a very low overhead, keeping with the discipline and business model which has been so successful for the Company."
"The acquisition of Option Card, LLC," Mr. Stern concluded, "coupled with our other purchases, brings our total purchases of portfolios to over $715 million for the quarter and increases the Company's presence in the distressed consumer receivable marketplace at a very attractive price, with extremely low risk and potentially meaningful benefits to our results. It is a compelling opportunity and one that, we believe, will prove to be highly rewarding to the Company and its shareholders." |
