Constellation Software Reaches Agreement with Fair Isaac Corporation to Purchase Its Collection and Recovery Business
FICO (NYSE:FICO) and Constellation Software (TSX:CSU) announced a binding agreement for Constellation to acquire FICO's Collection and Recovery business. This division automates various consumer collection processes and represents less than 10% of FICO's revenue. The acquisition is subject to closing conditions, but FICO anticipates an immaterial impact on future operating profits. Leadership from the Collection and Recovery team will remain post-acquisition. Wells Fargo Securities served as FICO's exclusive financial advisor.
- FICO's Collection and Recovery business will continue operating under the existing leadership team post-acquisition.
- Expectations of an immaterial impact on future operating profits from the divestiture.
- The Collection and Recovery business represents less than 10% of FICO's revenue.
SAN JOSE, Calif. and TORONTO, May 5, 2021 /PRNewswire/ -- FICO (NYSE:FICO), a leading predictive analytics and decision management software company, and Constellation Software Inc. ("Constellation") (TSX: CSU) jointly announced today that they have entered into a binding agreement for the purchase and sale of FICO's Collection and Recovery business to Constellation's Jonas Software operating group, a leading provider of enterprise management software solutions. Completion of the acquisition remains subject to mutually agreed closing conditions.
FICO Collection and Recovery products automate the lifecycle of consumer collections and recovery, including early collections, late collections, asset disposal, agency placement and optimization, recovery, litigation, bankruptcy, asset management, and residual balance recovery. The specific products consist of: Debt Manager™, Platinum, RMS (Recovery Management System), Placement Optimizer℠, PlacementsPlus®, and Agency Management Network. Additionally, following the closing of the transaction, the senior leadership team dedicated to the Collection and Recovery business will remain as executive management of the business under Jonas Software's ownership. It is expected that Jonas and FICO will continue to have a mutually beneficial relationship following the closing of the transaction.
"We are proud of the FICO team that built and delivered these industry-leading products our clients rely on to make their collection and recovery processes efficient and effective," said Will Lansing, CEO of FICO. "We are confident that Jonas will continue to invest in these solutions and support our clients and colleagues with the same commitment and partnership those clients and colleagues have come to expect."
"We look forward to maintaining the standard of excellence that FICO has instilled in their solutions," said Matt Otchet, Group CEO at Jonas. "The Jonas team is excited to induct the Collection and Recovery business into our portfolio."
The Collection and Recovery products represent less than 10 percent of FICO revenue. FICO expects the divestiture to have an immaterial impact on future operating profits. For this divestiture, Wells Fargo Securities, LLC served as exclusive financial advisor to FICO.
Forward-Looking Statements
Certain statements herein may be "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual events to be materially different from any future events expressed or implied by such forward-looking statements. Words such as "may," "will," "expect," "believe," "plan," "intend," "should," "anticipate" and other similar terminology are intended to identify forward looking statements. Such forward-looking statements involve significant risks and uncertainties, including risks that the transaction will not be consummated within the expected time period, or at all, and the risk that conditions to the closing of the transaction may not be satisfied. These forward-looking statements should not be read as guarantees of future results, and will not necessarily be accurate indications of whether or not such results will be achieved, or when such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and are made as of the date hereof, and Constellation and FICO assume no obligations, except as required by law, to update any forward-looking statements to reflect new events or circumstances.
About Constellation Software
Constellation acquires, manages and builds vertical market software businesses that provide mission critical software solutions.
About Jonas Software
Jonas is a global provider of vertical market software solutions, serving a multitude of industries. As an operating group of Constellation Software Inc., Jonas acquires, manages, and builds software businesses that provide specialized, mission-critical, enterprise solutions. Jonas companies invest in becoming leaders in their industries by ensuring that the products and services they offer meet the requirements of their clients in the present and future time horizons. Jonas helps companies improve their operations, grow through organic initiatives, and seek acquisitions to strengthen their market offerings.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
FICO is a registered trademark of Fair Isaac Corporation in the US and other countries.
Learn more at https://www.fico.com.
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SOURCE Fair Isaac Corporation
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