Transworld Systems Inc. (TSI) continued its acquisition binge last week, announcing on Friday evening that it had closed on its purchase of Account Control Technology Holdings, which had 20 offices and nearly 4,000 employees at one time. While terms of the deal were not disclosed, sources estimated that TSI paid between $140 million and $150 million to buy ACT.
Among the companies owned and operated by ACT are Convergent Outsourcing, Inc., Convergent Revenue Cycle Management, Inc., and Convergent Healthcare Recoveries, Inc.
“Scale matters, and our acquisition of ACT Holdings will further bolster our position as the largest receivables management and collections company in the United States, enabling us to make additional investments in people, technology and compliance and strengthening our industry leading position,” said TSI Chief Executive Officer Joe Laughlin, in a statement. “The addition of ACT Holdings will significantly increase our first party collections and customer care business and expand our healthcare revenue cycle management service offerings. We are excited to welcome ACT Holdings customers and employees to the TSI family.”
This is the second large purchase for TSI this year and the fourth acquisition in the past two years. Last month, it announced that it had acquired assets that were being sold by Performant Financial Corp., which included Premiere Credit of North America. And back in 2019, TSI purchased the collection division portfolio of Credit Bureau of Lancaster County, the financial services business of Altisource Portfolio Solutions, including Nationwide Credit, and bought Alltran Financial Services. TSI spent $44 million on its acquisition of Altisource.
The acquisition of ACT turns TSI, already a behemoth in the accounts receivable management industry, into an even larger player. TSI has more than two dozen offices across the country and more than 5,000 employees, the company says on its website. It collected more than $725 million in 2020.