SYDNEY, AUSTRALIA: Credit Clear Limited (ASX: CCR), a leading provider of digital debt collection and technology solutions, has announced the acquisition of DRA Group, a specialist in insurance-related debt recovery and legal services.

The deal, worth $1.5 million, will be paid in cash and shares and is expected to enhance Credit Clear’s earnings and market share in the insurance industry.

DRA Group, which operates under the brands ADC Legal and Debt Recoveries Australia, has a strong focus on the insurance sector, generating 95% of its $2.1 million revenue from insurance-related clients in Australia and New Zealand.

The acquisition will add new customers, expertise and resources to Credit Clear’s existing portfolio and enable cross-selling opportunities for its digital platform.

Credit Clear’s co-founder and managing director, Brenton Glaister, said the acquisition was a strategic move to accelerate the company’s growth in the insurance market, which he described as “a key target vertical for Credit Clear”.

“By combining our digital capabilities with DRA Group’s established relationships and expertise, we will be able to offer a more comprehensive and efficient service to our clients and their customers,” he said.

Glaister also said that Credit Clear would leverage its fully owned Philippines business process outsourcing (BPO) team to support the acquired businesses and improve its margins.

He added that Credit Clear’s Australian-based call centre would continue to handle all direct customer contact in Australia and New Zealand.

The acquisition follows Credit Clear’s successful integration of ARMA Group Holdings, another debt collection and legal services provider, which was completed in December 2022. Since then, Credit Clear has achieved underlying operational profitability and expanded its digital platform across new clients and portfolios of debt.

Credit Clear’s chairman, Mark Casey, said the company was “delighted” with the acquisition of DRA Group and the progress it had made since listing on the ASX in October 2020.

“We are confident that this acquisition will further enhance our position as a leading provider of digital debt collection and technology solutions in Australia and New Zealand,” he said.