Axactor SE

M&A Activity • Feb 28, 2017

Axactor enters the Swedish market through the acquisition of Profact AB

Axactor enters the Swedish market through the acquisition of Profact AB

Oslo, 28 February, 2017 - Axactor AB (publ.) ("Axactor") acquires

Profact AB from Aptic AB. Profact offering credit management

services and customer services in the Swedish market. The company

will serve as a stepping stone for implementing the full collection

value chain in Sweden and hence play an important role in Axactor´s

Nordic roll-out plan.

Located in Gothenburg, Profact has built solid foundations for

further growth within the debt collection and debt purchase market

in Sweden. The company has approximately 35 FTEs and has delivered

strong growth particularly in the Customer Service area over the

last few years. The 2016 revenues were approximately 2 mEUR with a

moderate margin. The company was established in 2008 by the CEO

Fredrik Kessler who has 24 years' experience in collection industry.

Axactor continues to establish a "Nordic value proposition". Through

the acquisition of Profact, Axactor now has immediate access to the

Swedish debt collection market. The company has a strong competence

within the industry, particularly in the debt surveillance area,

with Profact holding the necessary collection licence to collect on

behalf of third party customers. Axactor, will as part of the

transaction, sign a long term licence agreement with Aptic for the

use of the Aptic core collection system in Sweden.

"We clearly see customers requesting Pan Nordic value propositions

in the 3PC business and portfolio sales area. In addition, Sweden

represents an attractive market in its own right due to favourable

regulatory framework and the possibilities to perform automated and

efficient collections. With a market size approximately double that

of the Norwegian market and a regular flow of NPL portfolio sales,

Axactor is ready to make a solid footprint in the Swedish market.

Furthermore, the acquisition will give additional geographical

diversification to the company" says Endre Rangnes, CEO of Axactor.

Fredrik Kessler, CEO at Profact, said: "Axactor and Profact will be

a very good match in the Swedish market. Combining Profact's

experience of the Swedish credit management industry, with Axactor's

Organisational and Financial support, the company will offer

comprehensive debt collection solutions in Sweden".

Axactor will pay 1,25 mEUR for 100% of the shares in Profact AB.

Closing of the transaction is expected to be 28 February 2017, and

the acquisition will be financed using the existing credit facility

with DNB/Nordea and available cash.

About Axactor

Axactor Group specializes in both Debt Collection and Debt

Purchasing across several countries, with operations in Italy,

Germany, Norway and Spain. The company has a Nordic base and an

ambitious Pan-European growth strategy, which targets the market for

non-performing loans (NPL) in Europe. This market is estimated to be

about 1,500 billion euros across Europe providing significant

opportunities for Axactor's future expansion. After the acquisition

of Profact, Axactor will have approximately 875 employees.

About Profact

Profact offers quality services on the Swedish market within the

credit management and customer service industry. The focus is to

provide high flexible services to the market and help our clients to

be more cost efficient and increase revenue. Profact has a long and

wide experience in credit management and offers a total solution

within the CMS chain. Quality, service and flexibility are the key

values in the company.

Contacts:

Investor Relations Axactor

Geir Johansen

Tel. +47 477 10 451

E-mail: geir.johansen@axactor.com

Profact AB

Fredrik Kessler

Tel. +46 708 282 445

E-mail: fredrik.kessler@profact.se