NCO Group Parent Closes on Sale of U.S. Third-Party Collection Unit

Expert Global Solutions (EGS), parent company of ARM giant NCO Group, announced Monday the closing of a deal that saw it sell Transworld Systems and many other debt collection units to a private equity firm. The transaction was initially announced in July.

The deal, the financial terms of which were not disclosed, also involved NCO collection units focused on education, healthcare, and government, as well as its attorney network. All U.S.-based third party collection business have also been divested.

EGS will focus its BPO efforts on customer relationship management (CRM), first-party accounts receivable management, and international debt collection.

Los Angeles-based private equity firm Platinum Equity will run the old NCO collection units under the Transworld Systems (TSI) brand. The group said that a new TSI corporate identity campaign will roll out over the coming weeks in support of the transition.

NCO veteran Tim Galloway has been tapped to head the new company, as he was appointed President of TSI. Galloway has 18 years of BPO experience and has been with various segments of TSI and its predecessor companies for more than 10 years. Most recently, he served as Co-Head of NCO’s ARM business, under EGS’ ownership, where he had responsibility for operations in NCO’s government, education, and transportation divisions, as well as NCO’s Attorney Network and Master Servicing partnerships.

“I am excited about the opportunity to build on the great heritage and established culture of the company while charting our own course forward as a standalone business with all the tools we need to maximize our potential,” said Mr. Galloway.