Arrow Global Group Plc agreed to acquire Zenith Service SpA, a servicing business in the Italian structured finance market, for an enterprise value of €17 million, in a deal that will give the U.K.-based credit management services provider a "strategic entry into Italy."
Arrow Global said Dec. 6 that it will acquire 100% of the equity of Zenith through its wholly owned, newly incorporated Italian company. The acquisition will be funded in cash from the British firm's existing resources, with 60% payable on closing. The remaining 40% will be payable 12 months after closing.
The deal is expected to complete in the first half of 2017, pending regulatory approval by the Bank of Italy.
Following completion of the acquisition, Zenith, which has master servicing agreements for more than €14.1 billion AUM across multiple asset classes, will continue to be led by founder and CEO Giuseppe Amato, along with its other management team members.
Arrow Global expects the acquisition to be earnings neutral after taking into account amortization of the acquisition intangible assets.
