Cabot Credit Management has completed the acquisition of Wescot Credit Services , a leading UK contingency debt collection and business process outsourcing (BPO) services business.
Ken Stannard, Chief Executive Officer, Cabot said “We are delighted to welcome Wescot to our company and we are excited this acquisition has coincided with winning a major outsourcing contract which has further expanded our capabilities in servicing.”
Paul Jenkins, Chief Executive Office, Wescot, added: “We are looking forward to working as part of a bigger family and are pleased to be able to start off on such a positive footing by securing a major outsourcing deal, with approximately 150 staff transferring to Wescot, bringing the total of Wescot employees up to approximately 1050.”
Both companies are committed to providing a compliant, customer-focused business and this alliance will strengthen those synergies and widen their client base. Cabot is considering further integration measures, which may result in additional cash costs and further synergy opportunities. Headquartered in Hull, Wescot is the largest debt services provider for the UK retail banking sector and is consistently in the top ranks of debt collection agency (DCA) panels of a large range of financial services and corporate clients in utility, telecoms and retail finance.
Separately, Cabot Credit Management has announced in a statement that it will not be proceeding with an initial public offering on the London Stock Exchange. The Board believes proceeding with the transaction would not be in the best interest of the company or its shareholders, given the current IPO and broader market conditions. Cabot will continue to deliver on its growth strategy and will re-consider an initial public offering at such time as market conditions become more supportive.
Ken Stannard, CEO, Cabot Credit Management, said “The high level of engagement and interest that we received from a wide array of investors was very encouraging, but the timing has been unfortunate with respect to IPO market conditions.”