Firstsource Solutions acquires American Recovery Services, Inc.

Firstsource Solutions Limited, a global provider of business process management (BPM) services, today announced that it has agreed to acquire American Recovery Services, Inc. (ARSI), a nationwide legal collections network headquartered in Southern California. The cost of acquisition is $53 million including earnouts done through cash consideration.

Firstsource said that the acquisition enhances Firstsource's leadership in consumer debt management services by adding legal stage collections capabilities. The debt collections market is a significant part of the consumer credit ecosystem with evolving regulatory demands.

Both ARSI and Firstsource are pioneers in driving best-in-class debt recovery compliance, using advanced technology and emphasizing a positive consumer experience. These shared tenets add to the symmetry of this combination.

ASRI has provided legal collection services for over three decades through its nationwide partner network and in-house experts. Firstsource has earned its spot as a leader in providing high quality and responsible collection services in the early and late-stage receivables management business. By adding ASRI's deep domain expertise to its portfolio of services, Firstsource will now be able to help clients navigate the more complex legal collections process, all from under one roof.

"Firstsource is a leader in consumer debt receivables management and the acquisition of ARSI adds a top-notch legal network; we can now provide a broad platform aone-stop-shophop to large financial institutions and the burgeoning fintech market. We are delighted to welcome ARSI to the Firstsource family," said Vipul Khanna, MD & CEO of Firstsource Solutions.

"This acquisition expands our 'Digital First, Digital Now' strategy," said Arjun Mitra, president of global collections at Firstsource Solutions. "Integrating legal experts from the ARSI network throughout the US will create synergies with our best-in-class digital technology that simplifies complexities across our different business lines."

"We are very excited to join Firstsource and help create a truly comprehensive global collections business," said Tom Baxter, President and CEO of ARSI Group. Through the merger of our people and technologies, I earnestly believe Firstsource will offer its clients unparalleled service. As a new Firstsource company, we look forward to continuing our 36-year tradition of providing world-class legal network management capabilities to assist in the debt recovery process."

Shares of the IT company was trading at Rs 180.15 per share, down 1.23%, against the closing price of the prevision session of Rs 182.40 on the NSE at 11:17 am.

Firstsource Solutions Limited, an RP-Sanjiv Goenka Group company, is a leading provider of transformational solutions and services spanning the customer lifecycle across Banking and Financial Services, Healthcare, Communications, Media and Technology and other industries.