Credit Clear acquires insurance-based debt collector
Debt collection provider Credit Clear has purchased insurance specialist DRA Group for $1.5 million.
Credit Clear says it will acquire 100% of the business, including insurance debt recovery enterprises Debt Recoveries Australia and ADC Legal, as well as Nova Team Solutions, an upskilled business operation based in the Philippines. DRA Director Adam Stewart will also serve as a key consultant for Credit Clear for at least 12 months.
The firm says the deal complements its targeted expansion into the insurance market and expects to bring immediate positive results, with projections anticipating upwards of $450,000 in profit for this financial year.
Earlier this year, Credit Clear announced a two-year contract with IAG to provide its digital workflow services for third-party motor insurance claims. The deal was projected to double the firm’s insurance-related revenue to over $5.3 million.
Credit Clear says CEO and MD Andrew Smith, CFO Victor Peplow and Chief Product and Technology Officer Jason Serafino will host a briefing regarding the deal following its Annual General Meeting on November 23.