New York-based financial services firm Millstein & Co. has purchased four government service businesses from Norfolk, Virginia-based debt buyer PRA Group (Nasdaq: PRAA) for $91.5 million cash.
Millstein said Thursday it will operate Broussard Partners, eGov Systems, MuniServices and Revenue Discovery Systems through its newly formed entity – Government Revenue Solutions – that will work to provide technology, revenue enhancement and consulting services to government agencies.
Craig Adler, formerly executive vice president and chief financial officer at DLT Solutions, will serve as executive chairman and CEO of GRS.
Doug Jensen, Lisa Broussard, Kennon Walthall and Patrick Scott will continue to serve as heads of the four operating companies under GRS.
Steve Fredrickson, chairman and CEO of PRA Group, said in a statement issued Thursday the transaction would help the firm focus on its core business and support future acquisition of nonperforming loans through the use of cash proceeds from the deal.
Lazard Middle Market served as PRA’s financial adviser in the transaction.
PRA will log the transaction under the first quarter of fiscal year 2017 and discuss the deal’s impact at its earnings conference call on Feb. 28.
