Permira, the international private equity firm, announced today that a company backed by the Permira funds has entered into an agreement to acquire GFKL Financial Services, a leading provider of receivables management services in Germany, for an undisclosed sum.
GFKL manages a receivables portfolio of €16.6 billion for clients from various industries, including banks, insurance companies, online retailers and telecommunications companies. GFKL is one of the very few service providers in the market that has a high-quality professional receivables management offering, servicing not only major corporations but also medium-sized companies. In 2014, GFKL increased sales to €244 million (2013: €196 million).
The Permira funds will support the GFKL management as it capitalises on the company's huge growth potential in Germany and worldwide. An increasing number of companies are outsourcing their receivables management today, particularly small and medium-sized businesses which often lack the resources to do it themselves. The increasing importance of e-commerce also creates further growth opportunities for GFKL. Finally, the debt collection market in Germany is very fragmented which creates numerous consolidation opportunities.
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