Aditya Birla Minacs Worldwide Ltd, the business process outsourcing arm of the $28 billion Aditya Birla Group and a subsidiary of Aditya Birla Nuvo Ltd, yesterday acquired US-based Bureau of Collections Recovery (BCR), an accounts receivables management company, for an undisclosed sum.
This is the second acquisition by Aditya Birla Minacs in three months after it acquired the UK financial management services provider Compass BPO Ltd for an undisclosed sum in March, this year. (See: Aditya Birla Minacs acquires UK-based Compass BPO)
The acquisition, which was made by Aditya Birla Minac's subsidiary in the US, will give its clients access to BCR's team of collections experts.
Headquartered in Eden Prairie, Minnesota and office in New Delhi, BCR, an independently-owned company founded by Blake Rice in 1986, is a debt collection agency that provides recovery services though its 350-strong employee base.
BCR has a strong base of clients in the banking, financial services and telecom sectors, providing services in first-party, early out and third-party collections across various stages of delinquency, as well as in pre charge-off, primary and secondary post-charge off collections.
Post the acquisition, BCR will operate as a subsidiary of Aditya Birla Minacs. BCR's centres in Eden Prairie and Willmar, Minnesota will join ABM's' global network of 30 delivery centers across 3 continents delivering business solutions to its clients.
Deepak Patel, CEO of Aditya Birla said, "This is Minacs' second acquisition in three months and demonstrates our commitment to the strategic mission of building new capabilities. In addition to its proven expertise, BCR has a very strong operating model with a consistently growing top and bottom line. Its capabilities are adjacent to Minacs' core customer lifecycle services and enhance our ability to successfully win and deliver end-to-end solutions to our clients."
BCR founder Blake Rice, who is exiting his company, said, "I am delighted to see BCR become part of a global growth engine, and am confident that this acquisition will deliver long-term shareholder value to Aditya Birla Minacs."
Marty Sarim, president and CEO of BCR, will now take over as global practice leader for accounts receivables management at Aditya Birla Minacs.
Sarim said that the US debt collection industry alone is currently over $12 billion in size and is expected to grow at 12 per cent CAGR. ''With Minacs' global delivery platform, we will leverage our strengths to focus our efforts towards winning larger opportunities in this market place," he said.