Everyday People Financial Expands with Strategic Acquisition
Everyday People Financial Corp., a notable financial service provider, has announced a significant strategic move by acquiring CCS Group Holdings Limited. This acquisition includes its subsidiary, Commercial Collection Services Limited, and marks Everyday People's fourth acquisition in under two years, solidifying its position in revenue cycle management.
Understanding the Acquisition
The agreement involves the purchase of all shares of CCS Group for a total payment of C$4.5 million, with additional deferred and performance-based payments. This strategic acquisition aims to enhance Everyday People’s capabilities in debt collection, a vital service especially in sectors like healthcare and education.
Financial Structure of the Deal
The acquisition is funded through a mix of equity and a significant debt financing of C$6.0 million from a leading UK bank. This debt will be repaid over five years, showcasing a structured financial planning approach.
Impact on Everyday People's Business Strategy
This acquisition is expected to contribute an annual EBITDA between C$1.1 million and C$1.4 million, bolstering the company’s growth in the revenue cycle management sector. Everyday People anticipates further acquisitions in 2025, indicating a robust expansion strategy.
Corporate Leadership and Future Plans
In conjunction with the acquisition, Everyday People has announced key leadership changes. Maureen Griffiths has been appointed as the new Corporate Secretary, bringing extensive experience to ensure compliance and governance. This aligns with the company's strategy to refine its leadership structure, focusing on operational efficiency and growth.
Bank Loan and Funding Details
The non-revolving loan facility of C$6.0 million will be used to finance the acquisition, with flexible interest terms based on the Bank of England’s base rate. This strategic financial move supports Everyday People’s goal of becoming a leader in revenue cycle management.
Conclusion
Everyday People Financial is poised for significant growth with the acquisition of CCS Group Holdings. By leveraging strategic acquisitions and efficient financial planning, the company aims to enhance its service offerings and strengthen its market position.
