March 6, 2013 / 12:51 PM / 6 years ago

Encore Capital buys Asset Acceptance Capital for $200 million

(Reuters) - Debt collector Encore Capital Group Inc (ECPG.O) has agreed to buy Asset Acceptance Capital Corp AACC.O for $200 million to strengthen its position in a highly fragmented industry.

Encore’s offer of $6.50 per share represents a premium of 13 percent to Asset Acceptance’s Tuesday closing price.

Warren, Michigan-based Asset Acceptance buys individual consumer accounts, including credit card, telecommunications, and consumer loans.

Its shareholders will have the option to receive their consideration in cash or Encore stock or a combination of both.

Encore bought Propel Financial, a tax lien company, for $187 million in May last year.

Encore shares closed at $30.07 on Tuesday on the Nasdaq.

Reporting by Ashutosh Pandey in Bangalore; Editing by Saumyadeb Chakrabarty

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