Transaction Capital Disposes Nutun Australia Holdings To Allegro Funds
Transaction Capital Disposes Nutun Australia Holdings To Allegro Funds. Nutun Investments International, a wholly owned subsidiary of Nutun International, has entered into an agreement to sell its 100% equity interest in Nutun Australia Holdings to Dove Bidco, a wholly owned subsidiary of Allegro Funds for a total sale consideration of A$58.3 million.
Nutun Australia Holdings is mainly involved in the business of contingency-based and first-party debt collection and rehabilitation services and other Business Process Outsourcing (“BPO”) services via its operating subsidiary, Recoveries Corporation Holdings Pty Ltd (“RCH”), and is successfully offering customer solutions from Nutun’s South African facilities. Nutun Australia Holdings has a majority economic interest of 60% in RCH and a minority investment in Revive Financial Group Pty Ltd. Nutun International in turn is a wholly owned subsidiary of Nutun Holdings, a leading provider of a wide range of BPO and customer and debt or engagement services across a global client base. Nutun is wholly owned by Transaction Capital.
Allegro is an Australian alternative investments company with approximately A$4 billion assets undermanagement. Allegro, through its investment funds, will become the ultimate shareholder and beneficial owner of NAH post conclusion of the transaction.
Nutun was reviewing its operations to reposition or dispose of non-core assets in line with the group’s strategy to maximise shareholder value. Accordingly, Nutun has decided to sell its Australian business (which includes all its operations, infrastructure, and associated statutory structures in Australia, New Zealand, and Fiji) while entering into a strategic partnership with NAH and its new shareholder, through the on-going provision of customer and debtor engagement support services and associated technologies to NAH clients from South Africa.
The transaction will help streamline Nutun’s operating structure as the business continues to strengthen its position in the global BPO services market and scale its outsourcing services across industries and geographies. Transaction Capital will continue to work with Nutun to explore further restructuring to accelerate and optimise Nutun’s growth strategy.
Nutun Investments International will sell its equity interest in NAH to Dove Bidco and will accordingly exit Australia from an ownership, statutory, and infrastructural perspective. Nutun will continue to work closely with NAH and Dove Bidco, under a long-term strategic partnership, enabling both businesses to continue servicing existing clients, building new client partnerships, sharing knowledge and intellectual property while collaborating on multi-geography solutions for their respective clients. The Nutun affiliates will be restrained from directly offering its customer and debtor engagement services and associated technologies into the Australian and New Zealand markets for up to 5 years from the completion date, subject to agreed hurdles being met.
