Press

•  Press Releases •  Kaulkin Ginsberg In The News

Press

---

Press Releases

First North American Acquisition for Vertex

May 25, 2004 - Manchester, England. Leading U.K. business process outsourcer Vertex, part of United Utilities PLC, has announced the acquisition of US based debt collection agency First Revenue Assurance (FRA).

The acquisition follows Vertex's recent announcement of the establishment of Vertex Outsourcing - the company's North America customer management subsidiary - which has seen the appointment of John McLeod, former Vertex Corporate Development Director, as Chief Executive Officer (CEO) North America to head up the newly established division.

With the acquisition of FRA, Vertex is steadily pursuing its strategy of expansion in the North American utility and energy sectors, which builds upon its expertise gained through the ongoing successful delivery of a 10 year customer services contract with Toronto based energy provider Hydro One Networks.

Founded in 1997 by Judy LaSpada, Meredith Dickinson and Joe McCormack, FRA assists many large well-known US based companies in the telecommunications, banking and retail sectors who require professional assistance with account management and revenue collection services.

"This acquisition is absolutely the right decision for us," said Vertex Managing Director Tom Drury. "Vertex's considerable resources and outsourcing expertise will build on FRA's successful track record and continue the company's ascendancy in the US receivables and business process outsourcing markets. Our aim is to continue to grow the business whilst expanding our combined offering in the US utility and energy markets."

The US collections industry is a $9bn market that continues to grow rapidly with around 61% of utilities choosing to outsource collections work. Debt collection is one of the most common areas US utilities tend to outsource.

John McLeod CEO for Vertex North America commented: "Third party collections in the US are almost entirely a contact center function. In the UK we already collect $10bn per annum on behalf of our clients as well as operating debt recovery services. Therefore, FRA's business is already familiar to us. Combined with our considerable UK operation over time it will form the centrepiece of a significant international debt centre of excellence."

Denver based FRA employs 200 people and had revenues of around $12m in 2003. In 2002, FRA was named as the 125th fastest growing company in America by Inc Magazine. Vertex has confirmed the company will continue to trade under the First Revenue Assurance brand name.

The acquisition forms one element of Vertex's international development strategy which sees Vertex pursuing other large scale energy and utility contract opportunities in North America building on its Hydro One expertise.

Kaulkin Ginsberg Company (based Bethesda, Maryland) helped initiate this transaction and advised Vertex in the development and implementation of its entry strategy into the U.S. debt collection industry. Mike Ginsberg, President and CEO of Kaulkin Ginsberg said: " We are delighted to have brought Vertex together with First Revenue Assurance. The combined resources and outstanding reputation of both companies creates a compelling business proposition for the ARM industry."

For further information please contact:
In the United Kingdom:
Nigel Charlton, Vertex External Affairs Manager
(O) +44 161 493 2314
(M)+44 7775 618575

In the United States of America and Canada:
Zach Lewy, President, Vertex North America
(M) 646 642 8383

Judy La Spada, CEO, First Revenue Assurance
(O) 303 595-4400 x5001

About Vertex
Vertex is an international business process outsourcer with particular expertise in customer management, leading the way in helping organisations deliver operational and customer service excellence. We work in partnership with many other organisations to deliver a step change in performance. Typical services include customer handling, billing services and HR and financial services. Based in Manchester, England, Vertex operates across 30 locations nationally and employs over 9,000 people, largely within customer contact centers and information services. Visit www.vertex.co.uk for more information.

About Kaulkin Ginsberg Company
Since 1989, Kaulkin Ginsberg has provided solutions to accounts receivable management and other business services industries. Through our SAGE program (Strategic Analysis, Growth and Exit), we work with owners and executives in their efforts to grow or exit their business.  Our services include merger, acquisition and valuation advice, research, growth and operational consulting as well as training and executive search services.  Our Kaulkin Media division publishes CollectionIndustry.com™ and Credit & Collection Daily™, and is the leading source of industry information.  Kaulkin Partners, our sales and marketing group, is the leading source of cutting edge technology for creditors and collectors.  Lastly, Kaulkin Information Systems creates secure and affordable online information retrieval technology for accounts receivable, collections and other back-office applications.