Debt collector Encore Capital Group Inc has agreed to purchase Asset Acceptance Capital Corp for $200 million to strengthen its position in a highly fragmented industry. Encore's offer of $6.50 per share represents a premium of 13 percent to Asset Acceptance's Tuesday closing price.Warren, Michigan-based Asset Acceptance buys individual consumer accounts, including credit card, telecommunications, and consumer loans.Its shareholders will have the option to receive their consideration in cash or Encore stock or a combination of both.Encore bought Propel Financial, a tax lien company, for $187 million in May last year.
Asset Acceptance Capital Corp. is engaged in the purchase and collection of defaulted and charged-off accounts receivable portfolios from consumer credit originators. Shares of AACC remained unchanged at $5.76. In the past year, the shares have traded as low as $3.97 and as high as $8.16. On average, 31793 shares of AACC exchange hands on a given day and today's volume is recorded at 1400.
Encore Capital Group, Inc. (Encore) is engaged in consumer debt buying and recovery. Shares of ECPG remained unchanged at $30.07. In the past year, the shares have traded as low as $20.90 and as high as $33.07. On average, 239767 shares of ECPG exchange hands on a given day and today's volume is recorded at 0.
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