Originally founded in 1898 in Oslo, Lindorff is a leading European credit management services provider with operations in thirteen countries. It aims to help customers achieve sustainable spending and offers debt collection, debt purchase, and payment and invoicing services through an integrated business model. Lindorff is active in unsecured and secured non-performing loans across client industries, including banks, insurance companies, utilities, telecommunication companies and retailers.

In 2014, Nordic Capital acquired a majority stake in Lindorff from Investor AB and Altor, with the aim of creating a global industry player.

In June 2017, the combination of Lindorff and Intrum Justita was completed. The combination of Intrum Justitia and Lindorff creates a leading provider of credit management services (CMS) with local presence in 23 markets across Europe and a team of around 8,000 employees that are committed to promote a sound economy.

Sourcing

Having followed the debt collection space actively for several years, Nordic Capital utilised its sector insight and close relationships with key stakeholders to engineer an exclusive process to acquire Lindorff in 2014.  Successful completion of the acquisition was facilitated by an efficient due diligence process and strong support from the Capital Markets team.

Investment rationale

  • Strong market position across the credit management value chain – underpinned by an integrated business model with debt collection and debt purchasing under one roof.
  • Ability to benefit from the growth of non-performing loans, driven by tightening bank regulations across Europe.
  • Significant opportunity to create value through support service centralisation, investment in technology, and higher sales effectiveness.
  • Opportunities to accelerate growth through M&A.

Building the business

  • Growth accelerated by management upgrade and the recruitment of sector-leading talent, particularly in the high-growth debt purchasing business.
  • Operational improvement led by new CEO and highly experienced board.
  • Sector growth harnessed by innovative co-operation with leading European financial institutions to extract the full benefit of regulatory drivers.
  • Focus on execution with rollout of a sales acceleration programme and significant investment in new technologies, such as robotics in debt collection.
  • Active support by Nordic Capital to execute M&A and carve-out transactions with a total value in excess of EUR 500 million.
  • Expansion into new markets including Poland and Italy.
  • Entry into the secured non-performing loan market through the strategic acquisition of Aktua.
  • Expansion of the payment solutions business, leveraging synergies with debt collection.
  • Strategic combination with publicly listed Intrum Justitia in 2017 to capture continued strong growth in the non-performing loan market.