PRA Group Sells Government Services Business

PRA Group said Thursday it has sold its government services fee-for-service business to private equity firm Millstein & Co for $91.5 million in cash plus additional consideration for certain balance sheet items.

The sale allows PRA Group to “increase [its] focus on core business at a time of growing opportunity, particularly in the Americas,” according to PRA Group CEO Steve Fredrickson.

The company intends to use the cash proceeds to reduce borrowings on the domestic revolving credit facility creating capacity for future purchases of nonperforming loans.

By Sonia Taylor