Credit Clear collars ‘significant new clients’ following ARMA acquisition

Credit Clear (ASX: CCR) has collared “two significant new clients”, which it expects will bring in $1.6-2 million in additional revenue over the next 12 months – highlighting its enhanced offering through acquiring ARMA.

The new onboards includes what Credit Clear describes as a leading Australian utility operator, which is now one of its 10 largest clients.

Credit Clear’s other significant new onboard is a global fintech, which it anticipates could become on its largest international clients.

Both new clients have engaged ARMA, which is Credit Clear’s recent acquisition.

According to Credit Clear, acquiring ARMA enables the duo to provide an “enhanced hybrid offering” to global entities, including frictionless digital engagement and emphatic human interactions that are underpinned by Credit Clear’s artificial intelligence and data-driven technology.

“With ARMA and Credit Clear joining forces, we can provide leading global companies with an enhanced hybrid service (traditional plus digital collection strategies), underpinned by Credit Clear’s award-winning AI technology,” Credit Clear chief executive officer David Hentschke said.

“The fintech and utility sectors are a key focus of ours and we could not have hoped for a better start to ARMA and Credit Clear’s relationship,” he added.

ARMA acquisition

Mid-last month Credit Clear announced its was acquiring ARMA for $46 million – 60% cash and 40% scrip.

ARMA provides debt recovery solutions to Australian and New Zealand markets.

At the time, the acquisition led to Credit Clear adding more than 400 active clients and increased revenue 140% to about $26.5 million.

Credit Clear has developed integrated AI into its accounts receivable technology and won the Best use of AI award at the sixth annual Australian FinTECH awards 2021.

The company expects the acquisition will accelerate deployment of its platform across ARMA’s large client base, with both companies also anticipating further growth through a combined offering.

Roll-out of Credit Clear’s AI and data-driven technology across ARMA’s portfolio is already underway and is “progressing well”.

“Adding two significant clients in the month after the acquisition is an encouraging sign that clients value our combined and enhanced capabilities,” ARMA chief executive officer and co-founder Andrew Smith noted.