Advent International Fund has conducted discussions about a transaction of M&A type related to Ultimo Group. At present, parties have made the decision about suspension of discussions to have time for working out possible scenarios of consolidation and further development of a merged entity.

The branch of trade in receivables has been developing very dynamically. Having sources of financing at one's disposal, experience and the scale of operating activity are going to be the key factors to achieve success or maintain the position on this market. Good prospects for the market of sale and purchase of receivables give companies the possibility of further, consequent taking advantage of their potential and conditions for intensive development. On the other hand, entities that are not so well prepared for fluctuations, most likely shall become elements of consolidation in the branch. The distance between leaders of the branch and the rest of the market has been growing systematically.

Are discussions between Advent International and Kredyt inkaso the sign of combining competitive advantages, taking advantage of the present economic situation aimed at expansive development as well as making an effort to increase the share in the continually growing market of trade in receivables?

The strategy of Advent International investment in ULTIMO, similarly as in numerous private equity funds is based on several years' period of co-operation. For each portfolio company, the time comes when it has to search for new strategic options that will ensure it further intensive development while utilizing its potential.

Kredyt Inkaso Group has been present on the wholesale trade in receivables for 10 years and it has adopted long-term development plans. It is open for M&A transactions, in particular, the idea of the joint development with an entity the business model of which and development strategy would create synergy and in consequence, the considerable value on the consolidating debt collection market and the market. Being ready to complete such a transaction, Kredyt Inkaso Capital Group initiated discussions with Advent International, the object of which was ULTIMO.

At present, discussions have been discontinued, although each of parties assumes the possibility of resuming them - Each Company and its shareholders consider various options related to directions of development strategy and growth. One of analysed options was the consolidation and co-operation of both Companies. Discussions related to the possibility of taking advantage of potential synergy resulting from the co-operation, creating the unique value not present on the market so far have been conducted. Parties made the decision on the suspension of discussions to have the time for working out possible scenarios of the consolidation and further development. The area of investments in receivables continues to develop dynamically. We are of the opinion that stable sources of financing, experience in both investments in receivables market and the capital market and the scale of operating activity will be of the key importance for achieving success. Thus, the consolidation remains a natural future development of this sector. Good prospects for the market of sale and purchase of receivables give companies the possibility of further, consequent utilization of their potential and conditions to develop intensively - unanimously say representatives of both Kredyt Inkaso and Advent International.

Financial and transaction advisor of Kredyt Inkaso S.A. in this operation is Espirito Santo Investment Branch in Poland, which also successfully conducted two issues of shares (SPO) and three bonds issues for Kredyt Inkaso in the last year.

Until present, both Kredyt Inkaso and ULTIMO are still implementing individually adopted strategies, particularly, since prospects of development of companies and the whole sector are very promising. Experts' forecasts say that until 2014 the value of the market of investments in receivables will increase to the level of approximately PLN 10 billion annually.