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Press Releases
Kaulkin Ginsberg Transaction Provides PRA Entry Into The Government Market August 3, 2005: BETHESDA, MD - Kaulkin Ginsberg Company announces the acquisition of Alatax, Inc., a privately held company that specializes in government receivables management, by Portfolio Recovery Associates, Inc. (Nasdaq: PRAA), a company that purchases, collects and manages portfolios of defaulted consumer receivables. Kaulkin Ginsberg Company served as advisor to Alatax on this transaction. The acquisition, which was completed on July 29, 2005, after the market closed, has a total price of $17.5 million, consisting of $16.1 million in cash and $1.4 million in Portfolio Recovery Associates common stock. Alatax's two top executives, President Kennon Walthall and Executive Vice President Stephen Morris, have both signed long-term employment agreements and will continue to manage the company. Portfolio Recovery Associates anticipates the acquisition will be accretive to earnings beginning immediately. "Alatax represents an important investment for Portfolio Recovery Associates, providing us with entry into the large market for government account receivables management and creating yet another growth engine for the company. This transaction follows our strategy of selective acquisitions that bring us complimentary skills and expertise. In terms of its competencies, operating methods, philosophy and management, Alatax is a perfect fit for Portfolio Recovery Associates. We are excited to welcome Kennon, Stephen and the entire Alatax team to PRA," said Steven D. Fredrickson, Chairman, President and Chief Executive Officer of Portfolio Recovery Associates. Alatax, based in Birmingham, Ala., was founded in 1980 and has become a leading provider of outsourced business revenue administration, audit and debt discovery/recovery services for local governments - a growing segment of the debt collection industry. Alatax has a workforce of about 80 employees and contractors. Although most of its clients are located in Alabama (where it operates as Alatax), the company recently has begun expanding into surrounding states where it operates as Revenue Discovery Systems (RDS). "Alatax is proud to be joining Portfolio Recovery Associates, a dynamic and customer-oriented company with a clear focus on steady, disciplined growth," said Kennon Walthall, President of Alatax. "Together with PRA, we will continue to cement our leading position in the government collections market. Now, as part of a larger organization with greater resources, we will be able to more quickly refine and strengthen our current services as well as speed up the development and deployment of additional services we have in our development pipeline. Our current and future government clients will also benefit from the multi-state presence of PRA." "We were initially intrigued when Kaulkin Ginsberg introduced us to PRA, and after meeting with Steve and his team, we quickly saw great synergies and growth potential," said Walthall. "We are very pleased with the outcome of this transaction and Kaulkin Ginsberg's ability to help us locate the right partner for Alatax." Mark Russell, Senior Associate of Kaulkin Ginsberg Company, added. "Alatax brings a lot to the table as a market leader in the fast-growing government services sector. With PRA's support, Kennon and his team will be able to expedite their growth strategy and generate substantial value for PRA shareholders." About Portfolio Recovery Associates, Inc. About Alatax About Kaulkin Ginsberg Company Kaulkin Media publishes CollectionIndustry.com™
and Credit
& Collection Daily™, and is the most popular source of industry
information. Kaulkin Partners brings the latest technology to creditors and
collectors. Read more about Kaulkin Ginsberg at www.kaulkin.com. |
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