Encore Takeover of Asset Acceptance Clears Hurdle; Moving Forward

Debt buyer Asset Acceptance Capital Corp. (NASDAQ: AACC) announced late Thursday that the acquisition proposed last month by rival Encore Capital Group (NASDAQ: ECPG) will move forward as planned after certain closing conditions were recently met.

Asset Acceptance said that a potential third party suitor, who had initially indicated they would be offering an alternative to the Encore proposal, had backed out and would not be moving forward. The unidentified company told Asset Acceptance that it could not make a “Superior Proposal (as that term is defined in the Merger Agreement) and of its determination not to move forward with its proposal.”

Asset Acceptance also announced that its request for early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with the proposed merger has been granted and, therefore, such waiting period has ended and the related closing condition set forth in the Merger Agreement has been satisfied.

The merger is expected to move forward at the $200 million price initially announced.