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Street Talk

Credit Clear raising $29.5m to acquire debt recovery biz ARMA Group

Anthony Macdonald, Yolanda Redrup and Kanika Sood

Dec 14, 2021 – 10.05am

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Credit Clear Limited is raising $29.5 million via a placement and a share purchase plan to partly fund a 100 per cent acquisition of debt recovery business ARMA Group.

Street Talk. Louise Kennerley

ARMA Group provides debt recovery solutions in Australia and New Zealand, with clients including NSW Health, Coates Hire and Suncorp. For the 2021 financial year, it reported $15.5 million revenue and $6.4 million EBITDA.

Credit Clear Limited would pay an initial purchase price of $46 million (60 per cent in cash and 40 per cent in scrip) plus an estimated $6 million earnout which would be similarly split into scrip and cash.

The placement was split into two tranches: $13.5 million in the first one and $12 million in the second one, which is subject to approval to shareholder vote around January 21.

The offer was priced at 40¢ per share, according to terms sent to potential investors.

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The placement would be followed by a share purchase plan to raise about $4 million.

Bell Potter, which was running the raise, called for bids by Tuesday 4pm.

Credit Clear had an $85 million market capitalisation before the raise.