Credit Corp acquires Baycorp and increases 2020 guidance

Friday, 16 Aug 2019

Credit Corp Group Limited (Credit Corp) announces today that it has acquired Baycorp Holdings Pty
Limited and its associated entities (collectively Baycorp) from Encore Capital Group (NASDAQ: ECPG)
for a total net consideration of approximately A$65 million.

Baycorp is a large and well-established debt purchasing and debt collection operator across Australia
and New Zealand. Its assets comprise a sizeable purchased debt ledger (PDL) book, a PDL collection
platform and agency collection businesses in Australia and New Zealand.

Some integration of the acquired businesses will be required in to order to deliver pro-forma returns.
The PDL collection platform will be promptly merged with Credit Corp’s existing Australian and
New Zealand debt buying business. The New Zealand agency business will be preserved and
enhanced. The Australian agency operation will be progressively restructured to ensure that it operates

Mr Thomas Beregi, CEO of Credit Corp, commented that the acquisition provided both an attractive
secondary PDL book acquisition and the opportunity to create a large and successful agency business.
“We expect to achieve our targeted investment return on the PDL component of the transaction and see
opportunity to scale up our existing agency activities” he said.

Baycorp’s New Zealand agency business enjoys a strong reputation and an impressive position in the
market. Mr Beregi acknowledged the quality of the business and identified the strategic benefit of
acquiring a physical presence in the market. “Entry into the New Zealand agency market by acquiring a
leading operator will enable us to broaden our client relationships and put us in a better position to grow
our debt buying market share” he said.

View the full media release and updated guidance details here.