U.K.-based credit management services provider Arrow Global Group Plc completed the acquisition of Italian servicing business Zenith Service SpA for an enterprise value of €17 million, following regulatory approval from the Banca D'Italia SpA.
The transaction, announced in December 2016, was funded from Arrow Global's cash resources, with 60% payable on completion and 40% to be paid 12 months after completion. The deal is expected to be earnings neutral, after taking into account amortization of the acquisition intangible assets.
Arrow Global said the deal, which marks its entry into the Italian market, will enable it to expand its European footprint, further diversify its income streams and increase the weighting of asset management revenues across the company, which it expects to be 25% of total revenues in 2017.
Following completion of the deal, Arrow Global named John Calvao and Joao Bugalho country heads for Italy and Portugal, respectively, with immediate effect.
Established in 1999, Zenith Service manages and oversees securitized and nonsecuritized loan portfolios, and has master servicing agreements for more than €14.2 billion of AUM. It has operations in Milan and Rome and employs more than 80 staff.
