Firstsource Solutions Limited has informed the Exchange about Acquisition
FSL · price
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Awaiting price reaction for this filing.
Firstsource Solutions, through its wholly-owned UK subsidiary Firstsource Solutions UK Limited (FSL UK), has signed a share purchase agreement to acquire 100% of Pastdue Credit Solutions Limited (PDC), a UK-based debt collections agency, for a total consideration of GBP 22 million (including upfront payment and earnouts), to be paid in cash. PDC was founded in 2005, is registered with the UK Financial Conduct Authority (FCA), and provides white-label early arrears and debt collections & recovery services. PDC reported turnover of GBP 16.9 million and operating profit of GBP 3.4 million for Nov 2023–Oct 2024, showing strong growth from GBP 12 million and GBP 0.9 million respectively in the prior year. The deal is subject to FCA and UK National Security and Investment Act 2021 approvals, after which PDC will become a step-down subsidiary. The transaction is not a related-party deal.
This is a strategic bolt-on acquisition to expand Firstsource's footprint in the UK debt collection market. The deal size (GBP 22M) is relatively small compared to Firstsource's scale and is fully cash-funded. Short-term stock reaction is likely neutral to mildly positive, with the actual impact depending on FCA approval timing and synergy realization.