• Credit Clear to acquire 100% of UK-based debt collection agency ARC Europe
• Acquisition expected to be earnings and EPS accretive in first year
• $20.75 million placement completed to fund acquisition and support future growth

Credit Clear Limited (ASX: CCR) has entered into a binding agreement to acquire 100% of the issued share capital in ARC Europe Ltd, a UK-based debt collection agency. The acquisition price is £5.25 million (A$10.9 million), which will be paid through a combination of cash and shares in Credit Clear. The acquisition is expected to be earnings and EPS accretive in its first year of ownership. ARC Europe generated FY25 revenue of $8.8 million and EBITDA of $1.24 million. The acquisition will provide Credit Clear with immediate scale in the UK market, allowing it to leverage ARC's customer base and overlay its digital platform. The combination of Credit Clear and ARC is expected to drive operational efficiencies, accelerate growth, and unlock cross-sell opportunities. The acquisition also materially expands Credit Clear's total addressable market with the expansion of its geographic footprint. Additionally, Credit Clear has completed a $20.75 million placement to institutional and sophisticated investors to fund the acquisition and provide balance sheet flexibility for future growth opportunities. Credit Clear's Chair, Paul Dwyer, has subscribed for $8 million in the placement, subject to shareholder approval, increasing his shareholding from 2.3% to approximately 8.2%.

The acquisition of ARC Europe is expected to support Credit Clear's expansion into the UK and European markets, driving operational efficiencies, accelerating growth, and unlocking cross-sell opportunities. Credit Clear remains disciplined in its evaluation of further acquisition opportunities that will expand its market position and deliver long-term value to shareholders.