Millstein Capital has formed a new platform company, Government Revenue Solutions (GRS), to acquire four subsidiaries of publicly-traded PRA Group for $91.5 million in cash.
The acquired subsidiaries are MuniServices, Revenue Discovery Systems, Broussard Partners and eGov Systems, which collectively provide revenue enhancement, technology and consulting services for government agencies (www.muniservices.com) (www.broussardpa.com) (www.revds.com) (www.e-govsystems.com).
As part of the transaction, Millstein Capital has named Craig Adler as the new Executive Chairman and Chief Executive Officer for GRS. Mr. Adler has more than 35-years of accounting, audit and public sector experience. He formerly served as Executive Vice President and CFO at DLT Solutions, a value-added reseller of software to federal, state and local governments and a current portfolio company of Millstein Capital.
“The management teams at GRS’s operating companies have done an outstanding job over the last 20 years to expand the services, clients and reputation of their respective firms,” said Mr. Adler. “Millstein Capital sees immense value in MuniServices, RDS, Broussard Partners and eGov, and wants to ensure that their momentum in the marketplace continues.”
Millstein Capital is the private equity investment arm of Millstein & Co., a financial advisory firm with offices in Washington DC and New York. The group makes control investments in middle-market business services, industrial, consumer and technology-enabled businesses that are based in North America. The group is based in New York (www.millsteincapital.com) (www.millsteinandco.com).
PRA Group (NASDAQ:PRAA) (formerly Portfolio Recovery Associates) is a debt purchasing and debt collections company serving banks, businesses, and government clients. In recent years, PRA Group has been the subject of litigation from the Attorney General of New York and the Consumer Financial Protection Bureau which have alleged that the company has engaged in improper debt collection practices. PRA Group is based in Norfolk, VA (www.pragroup.com).
© 2017 Private Equity Professional | January 27, 2017
