Portfolio Recovery Associates Inc. agreed to acquire the equity interest in Aktiv Kapital for about $880 million, while also agreeing to assume about $435 million of its corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion.

The combined entity will be one of the world's largest acquirers of non-performing consumer debt from banks and other creditors, with more than $4.6 billion in estimated remaining collections from customers, Portfolio Recovery said in a statement.

The company, which estimated $2.7 billion in remaining collections from its customers in 2013, said it would also assume Aktiv's debt of $435 million, giving the deal an enterprise value of $1.3 billion.

The company said it expected the deal to immediately add to earnings and estimated cost totaling about $15 million over the first and second quarter.

Deutsche Bank Securities Inc acted as adviser to Portfolio Recovery while William Blair advised Aktiv Kapital.

The company expects to close the deal in second quarter, subject to certain customary and regulatory closing conditions.

Aktiv Kapital is a company specializing in the acquisition and servicing of non-performing consumer loans throughout Europe and in Canada

2014 Feb, 20