Squire Patton Boggs has advised Arrow Global Group plc on the acquisition of the entire share capital of Zenith Service SpA, a leading master servicer in Italy operating in the field of non-performing loans, for an enterprise value of €17 million. The share purchase agreement was signed in December 2016, and has now completed, having received all necessary regulatory approvals from the Bank of Italy.
The team advising Arrow Global plc on this transaction, its first investment in Italy, was led by Corporate partner Massimo Galli and included Corporate associate James Ferrow, as well as Tax Strategy & Benefits senior associate Liz Wilson.
Established in 2005, Arrow Global specialises in the purchase, collection and servicing of non-performing loans. It plays an active role in helping financial institutions deleverage and recapitalise in order to increase mainstream lending. A regulated business in all of its European markets, Arrow Global has assets under management in excess of €41 billion (as of December 2016) and 9.3 million customer accounts. The group's entry into Italy expands its European footprint, building on its top-three market positions in the UK, Portugal and Benelux and reinforces its position as a leading European debt purchase and management business.
Zenith was established in 1999 and manages and oversees securitised and non-securitised loan portfolios. With operations in Milan and Rome, the business has over 80 staff and typical clients include Italian and international banks, leasing companies, hedge funds and other financial entities.
The transaction represents another success for the Italy Practice of Squire Patton Boggs, which in recent times, has been advising a number of foreign investors and corporations, as well as funds, on the execution and management of their investments in Italy, across various industrial sectors, including profitable or distressed enterprises.