Firstsource Solutions Limited has successfully completed its acquisition of Pastdue Credit Solutions, marking a significant milestone in the company's UK expansion strategy. The transaction was finalized on December 11, 2025, after receiving all necessary regulatory approvals.

Acquisition Completion Details

Firstsource Solutions UK Limited, a wholly-owned subsidiary of Firstsource Solutions, has acquired 100% ownership of Pastdue Credit Solutions for an aggregate consideration of GBP 22 million. The deal structure includes both upfront payment and earnouts, representing a cash consideration transaction.

Regulatory Approvals Secured

The completion follows the receipt of all requisite regulatory approvals, including clearances from the Financial Conduct Authority (FCA) and under the National Securities and Investment Act 2021 (NSI Act). The Share Purchase Agreement was originally signed on July 18, 2025, with the transaction subject to these regulatory conditions.

Strategic Market Expansion

This acquisition strengthens Firstsource's position in the UK debt collection services market, particularly in utilities, telecommunications, and public sector segments. The move comes at a strategic time, with the UK collections market opportunity estimated at over GBP 1.90 billion, driven by rising consumer debt and growing private agency involvement in public sector collections.

Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource, emphasized the company's commitment: "This move underscores our long-standing commitment to UK employment. We continue to believe that investing in local talent and infrastructure is integral to building a long-term sustainable business."

About Pastdue Credit Solutions

Founded in 2005 and incorporated on July 21, 2005, Pastdue Credit Solutions is an FCA-registered UK-based collections agency. The company specializes in white-label, early arrears, and debt collections recovery services, serving major banks, utility providers, telecommunications companies, and government bodies.

Future Outlook

The completed acquisition enables Firstsource to leverage its digital-first, AI-driven capabilities alongside Pastdue Credit Solutions' local expertise and established client relationships. Phil Grant, Chairman of Pastdue Credit Solutions, expressed optimism about the partnership: "This partnership has the potential to enable a new and exciting chapter for our people, our valued clients, and our future."

The transaction represents Firstsource's continued focus on expanding its Business Process Services (BPS) capabilities in key international markets, particularly in the growing debt collection sector where regulatory compliance and technological innovation are increasingly important.

Firstsource Solutions has received a credit rating outlook upgrade from CRISIL Ratings, marking a positive development for the IT services company. The rating agency revised its outlook on the company's long-term bank facilities to Positive from Stable while maintaining the existing rating levels.

Credit Rating Details

CRISIL has made specific changes to Firstsource Solutions' credit ratings across different categories. The comprehensive rating update covers the company's total bank loan facilities and reflects the agency's assessment of the company's financial position.

Rating Actions Taken

The rating agency has taken two distinct actions regarding Firstsource Solutions' credit profile:

• Outlook Revision: The outlook on long-term bank facilities has been upgraded to Positive from Stable
• Rating Reaffirmation: Both long-term rating at CRISIL A+ and short-term rating at CRISIL A1 have been reaffirmed

Regulatory Compliance

The company communicated this development to both major stock exchanges on December 10, 2024. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates timely disclosure of material events.

Documentation and Transparency

Firstsource Solutions has provided complete transparency regarding the rating change by sharing the official CRISIL rating document link with the exchanges. This ensures that all stakeholders have access to detailed information about the rating rationale and methodology used by the credit rating agency.

The positive outlook revision indicates CRISIL's improved assessment of the company's credit profile and suggests potential for further rating upgrades in the future, subject to the company's financial performance and business developments.