£22 Mil Acquisition: Firstsource Solutions shares in focus after acquiring UK based agency

Synopsis: The shares of this small-cap BPM stock were in focus following the completion of the acquisition of PDC, a UK-based collection agency, for £22 million. The company reported a £16.9 million turnover and a £3.4 million operating profit in the latest financial year. 

The shares of this company, which is a leading player in the Business Process Management (BPM) industry and provides bespoke services and solutions to its customers across banking and financial services, communications, media, and more, were in focus as the company completed the acquisition of PDC through its UK subsidiary.

With the market cap of Rs 23,739 crore, the shares of Firstsource Solutions Ltd has gained 1.3% after reaching an intraday high of Rs 344.70 compared to its previous day closing price of Rs 340.30. The shares are trading at a PE of 36.5, which is the same as its industry PE of 36.5, and have given a return of 354% in the last 5 years. 

About the PDC acquisition.

Firstsource Solutions has completed its acquisition of Pastdue Credit Solutions (PDC) through its UK subsidiary, marking an important step in strengthening its foothold in the UK debt collection services market. PDC, founded in 2005, is an FCA-registered collections agency that specialises in white-label, early arrears, and recovery services.

With all regulatory approvals secured, including those under the NSI Act and from the Financial Conduct Authority, the acquisition was finalised smoothly, reinforcing Firstsource’s commitment to expanding in regulated, high-trust markets.

Why it benefits the company. 

What makes this acquisition especially meaningful is PDC’s strong and consistent performance. In the latest financial year (Nov 2023–Oct 2024), PDC reported £16.9 million in turnover and £3.4 million in operating profit, with previous years showing stable revenues of £12.0 million and £12.4 million, respectively.

Firstsource has acquired 100% ownership for £22 million in an all-cash deal that includes upfront payment and earnouts. This gives Firstsource full control over PDC’s operations and ensures that the business’s healthy margins and recurring revenue streams directly contribute to the group’s financials.

Beyond financial strength, the acquisition fits naturally into Firstsource’s strategy of deepening its capabilities in customer management and collections. PDC’s long-standing experience, strong regulatory standing, and operational depth give Firstsource a stronger presence in a mature market, along with opportunities to expand its service offerings and cross-sell solutions. With this move, Firstsource not only adds a profitable business but also enhances its competitive edge in a sector that offers resilience, stability, and long-term growth potential.

Financials and more.  

The revenue from operations for the company stands at Rs 2,312 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 1,925 crores, growing by about 20 per cent YoY. Similarly, the net profit stood at Rs 138 crore in Q2 FY25, which grew to Rs 180 crore in Q2 FY26, a growth of about 30 per cent.

Firstsource is a global business process management company from the RP–Sanjiv Goenka Group, helping some of the world’s biggest brands transform how they manage their customers and operations. It delivers solutions across healthcare, banking and financial services, communications, media, technology, and several other industries. With a strong footprint in the US, the UK, India, Mexico, Australia, and the Philippines, Firstsource has become a trusted partner for multiple Fortune 500 and FTSE 100 companies, supporting them across the entire customer lifecycle with digital tools, data-driven insights, and deep domain expertise.

The scale of its work highlights the company’s impact—Firstsource manages 200 million customer interactions, handles 2 billion back-office transactions, and operates through 57 centres across 10 countries, powered by a team of 34,144 Firstsourcers.

Its approach blends focused domain teams with advanced technology, data, and analytics to help clients solve complex challenges and prepare for the future. This combination of global reach, technical capability, and collaborative delivery makes Firstsource a strong and reliable partner for organisations seeking long-term transformation.

Written by Leon Mendonca. 

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