Credit Clear acquire ARMA for $46 million
ASX-listed fintech Credit Clear announce that it has signed an agreement to purchase 100% of ARMA Group Holdings for a total consideration of $46 million, plus an earnout component.
The acquisition accelerates growth of Credit Clear, leveraging the Company’s scalable AI platform across ARMA’s more than 400 active clients and differentiated geographic footprint. Credit Clear’s technology has proven to be significantly more effective and profitable than traditional methods of collecting accounts receivable.
Credit Clear has successful track record of acquiring clients who manage consumer receivables and transitioning them to its digital platform, as demonstrated through Credit Clear’s acquisition of Credit Solutions in 2019. The acquisition of ARMA and the addition of its acclaimed senior sales team, enhances Credit Clear’s geographic presence, and broadens its industry coverage. It also strengthens the financial and operational profile of the combined group as the Credit Clear technology will significantly increase the operating leverage of ARMA. In this way the technology is being used to deliver on Credit Clear’s strategic initiatives and to deliver long-term shareholder value.
The founders of ARMA, Andrew Smith and Shane Ashton, will continue to manage the ARMA business as part of the Credit Clear Group, and all ARMA employees will also transfer across to Credit Clear. Andrew Smith will join the Credit Clear Board as an executive director.
Credit Clear CEO, David Hentschke (pictured left), said, “Credit Clear is at the forefront of a major global transformation in the way businesses interact with their customers. The ARMA acquisition provides us an opportunity to deploy this leading digital technology across ARMA’s significant existing client base and to win considerable new business together. It will accelerate top line growth and build on the tremendous success Credit Clear has achieved in expanding the use of the digital platform after acquiring Credit Solutions in 2019. The management and senior staff of ARMA provide a very strong cultural alignment with Credit Clear and a strong foundation for a successful journey ahead.”
Industry validation of Credit Clear’s platform was achieved last week, when the company was awarded the ‘Best Use of AI in Fintech’ at the 2021 Australian FinTech Awards last week.
