Sigma acquires CCSG in undisclosed deal
REDDITCH-based debts and acquisition group Sigma has brought out a nearby rival in an undisclosed deal.
Sigma said it had taken on 100% of the shares of Bromsgrove-based Recodebt Ltd. The deal sees it acquire all of the contingency business and employees of CCSG and it has pledged to develop the business alongside Sigma’s own collections, portfolio purchase and litigation businesses.
Founded in 1973, CCSG has 81 employees operating from its own premises whereas Sigma has over 100 employees. CCSG specialises in collections and credit control for utility companies, telecom companies and government agencies.
The deal marks Sigma’s second acquisition in as many months after its litigation subsidiary HL Legal Solicitors agreed to buy Cobbetts’ debt recovery business Incasso from KPMG, which was acting as the failed law firm’s administrators.
Sigma said it was a rapidly growing contingency collections and portfolio purchase business, which is backed by funds managed by Cyrus Capital Partners. In the last 18 months, Sigma has received substantial financial backing from Cyrus funds and developed an operating platform providing contingency collections services to a wide range of blue chip clients, including major financial institutions, retailers and telecom companies.
Affiliates of Sigma have also invested in a number of portfolios of non-performing consumer loans and have a £125m facility to support this activity.
Tim Freeman, CEO of Sigma, said: “We are very pleased to be joining forces with CCSG who have an excellent reputation with a very strong contingency client base. I have no doubt that the combined strengths of CCSG and Sigma will allow us to offer a broader product offering to a wider range of clients with the financial backing of a very supportive shareholder.”
Mark Leech, speaking on behalf of the vendors of CCSG, said his management team had been building up the since an MBO in 2007 and the time was now right to hand the business on to a larger partner.
“CCSG has tremendous opportunities ahead of it and will benefit from the additional financial support and wider product range that The Sigma Financial Group can provide,” he said.
