Knightsbridge Insolvency Services, part of the Money Advice Group, has acquired all the insolvency cases from Personal Debt Help Line (PDHL) – a Cheadle-based debt management firm.
Knightsbridge, based in Carrington, Greater Manchester, will acquire 2,100 insolvency cases and 18 employees, in a deal expected to be worth £2m to the business.
Completed in just under eight weeks, the deal is one of several pending acquisitions that Money Advice Group has in the pipeline for the next few months.
There has been a previous deal between the Money Advice Group and PDHL.
In March 2015 PDHL acquired Carrington-based Kensington Financial Management Consultants, a provider of debt management plans which was owned at the time by Money Advice Group.
In June 2015, it was announced that PDHL had reached an agreement with the Financial Conduct Authority (FCA) to apply voluntarily for requirements to be imposed on it.
The requirements meant the business could no longer make any new arrangements with customers that involved debt repayment plans, or debt counselling services.
Now, in January 2016, Money Advice Group has bought all the insolvency cases from PDHL.
On this recent transaction Stuart Parkin, chief executive of Money Advice Group, said: “The acquisition of insolvency cases and staff members from PDHL is a significant move for us and a promising start to 2016.
“The 2,100 new client cases will add to our growing portfolio – taking our insolvencies division to 28,000 clients in total.”
Parkin added: “This acquisition and our other pending deals, will drive the business forward as we aim to become the market-leading insolvency supplier.”
The acquisition takes the total number of staff at Knightsbridge Insolvency Services to 200.
By Marcel LeGouais