Quick Summary: Firstsource Solutions Ltd has announced the acquisition of UK-based Pastdue Credit Solutions (PDC) for £22 million (approx. ₹234 crore), subject to regulatory approvals. PDC is a debt collection agency serving major UK banks, utility, telecom, and government clients. The deal strengthens Firstsource’s presence in the UK’s growing collections market and aligns with its strategy to expand sector-specific offerings. PDC reported a turnover of £16.9 million and operating profit of £3.4 million for FY24. The acquisition will be completed through Firstsource’s UK subsidiary and involves 100% ownership.
Full Article: Firstsource Solutions Limited (NSE: FSL, BSE: 532809), a global provider of domain-led Business Process Services and part of the RP-Sanjiv Goenka Group, has announced the acquisition of Pastdue Credit Solutions (PDC), a UK-headquartered debt collection company. The deal, valued at £22 million (approximately ₹234 crore), includes upfront payment and earnouts, and is subject to approval from the UK’s Financial Conduct Authority (FCA) and under the National Security and Investment Act 2021.
Pastdue Credit Solutions is an FCA-registered agency that offers white-label, early arrears, and debt recovery services. The company serves some of the UK’s largest organisations, including banks, utility providers, telecom companies, and government bodies. The acquisition will be executed through Firstsource Solutions UK Limited (FSL UK), a wholly-owned subsidiary of Firstsource. Once completed, PDC will become a step-down subsidiary of the parent company.
Dr. Sanjiv Goenka, Chairman of the RP-Sanjiv Goenka Group and Firstsource, said the acquisition will strengthen Firstsource’s capabilities in the fast-growing collections segment. “Pastdue Credit Solutions’ expertise across utilities, financial services, and the public sector enhances our offerings in areas that are both critical and expanding. This also reinforces our long-term commitment to investing in UK jobs and infrastructure,” he stated.
The deal comes at a time when the UK’s collections industry is seeing a surge in demand due to rising consumer debt and a growing role for private agencies in government-backed collections. The overall market opportunity is estimated at over £1.9 billion. Firstsource aims to combine its AI-driven, digital-first approach with PDC’s local expertise to offer responsible and scalable debt recovery solutions.
Phil Grant, Chairman of Pastdue Credit Solutions, expressed optimism about the acquisition. “We are proud to become part of the Firstsource family. Their global experience, innovation culture, and track record in debt collections will help us scale faster, broaden our service offerings, and create new growth opportunities for our clients and employees,” he said.
PDC was established in July 2005 and operates solely in the UK. Over the last three financial years, the company has shown consistent performance. For the period November 2023 to October 2024 (estimated), PDC expects a turnover of £16.9 million with an operating profit of £3.4 million. In the previous years, it reported revenues of £12.0 million and £12.4 million with operating profits of £0.9 million and £1.9 million, respectively.
This acquisition is not a related party transaction, and none of the company’s promoters or group companies hold any interest in Pastdue Credit Solutions. The entire deal will be settled in cash. Firstsource will acquire 100% ownership, marking a significant expansion of its UK footprint and enhancing its capabilities in the debt collections industry.