How Will Credit Clear’s $7.75M DTS Buy Transform Its Digital Collections?
Credit Clear Limited has agreed to acquire DTS, a SaaS collections business with a 35-year history, for A$7.75 million, enhancing its digital platform and global footprint. The deal is expected to be earnings accretive and unlock new growth opportunities across multiple international markets.
- Acquisition of DTS for A$7.75 million in cash
- DTS operates across UK, Australia, New Zealand, Canada, and USA
- Deal implies a 6.5x forecasted FY26 EV/EBITDA multiple
- Adds automated voice call capabilities to Credit Clear’s platform
- Expected to be earnings accretive in first full year
Strategic Acquisition to Boost Digital Collections
Credit Clear Limited (ASX – CCR), an Australian technology company specialising in digital debt collection, has announced a binding agreement to acquire 100% of illion Digital Tech Solutions Holdings Limited (DTS). This SaaS-based collections business, with a 35-year track record, operates across key international markets including the United Kingdom, Australia, New Zealand, Canada, and the United States.
The acquisition, valued at A$7.75 million and payable in cash from Credit Clear’s existing reserves, is expected to close around 1 January 2026. It represents a significant step in Credit Clear’s strategy to scale and diversify its digital platform, particularly by expanding into early-stage collections and integrating new technology capabilities.
Enhancing Technology and Client Reach
DTS brings a complementary suite of digital debt collection tools, notably its automated voice call functionality, which will augment Credit Clear’s existing AI-driven platform. This integration promises to improve customer engagement, reduce operational costs, and enhance compliance through data-driven insights derived from millions of interactions.
Importantly, DTS services a strong roster of Blue-Chip clients across sectors such as financial services, telecommunications, utilities, and government. Credit Clear anticipates immediate cross-selling opportunities without the usual onboarding delays associated with Tier 1 clients, potentially accelerating revenue growth and market penetration.
Financial Outlook and Market Expansion
According to unaudited figures annualised for FY26, DTS has generated approximately $10 million in revenue and $1.2 million in EBITDA year-to-date. The acquisition is forecasted to be earnings accretive in its first full year under Credit Clear’s ownership. This deal also complements Credit Clear’s recent acquisition of ARC Europe, further expanding its geographic footprint and reinforcing its position in the global digital collections market.
CEO Andrew Smith highlighted the strategic value of the acquisition, noting that DTS will increase the proportion of SaaS revenue from 5% to 17%, deepening integration with client systems and replicating the success of previous acquisitions like ARMA in Australia.
Looking Ahead
While the acquisition promises to accelerate Credit Clear’s growth trajectory and technological capabilities, the integration of DTS’s platform and client base will be critical to realise these benefits fully. Investors will be watching closely for updates on synergy realisation, client retention, and the impact on Credit Clear’s overall financial performance.
Bottom Line?
Credit Clear’s DTS acquisition marks a pivotal expansion, but seamless integration will be key to unlocking its full potential.
Questions in the middle?
- How will Credit Clear integrate DTS’s voice call technology with its existing AI platform?
- What are the detailed synergy cost savings and revenue uplift projections post-acquisition?
- How will Credit Clear manage client retention and cross-selling within DTS’s Blue-Chip customer base?
