Dallas company buys SupportKids of Austin
ParentFinancial to relocate to Austin.
By Tim Eaton
Saturday, August 15, 2009
An Austin-based child-support collection company has been sold to a smaller Dallas-based company that operates the same type of business.
SupportKids Inc.'s caseload, computers, intellectual property, Web site and other assets now belong to ParentFinancial Services Inc., said Rob Feito, president and CEO of the Dallas company, on Friday.
Feito declined to disclose the terms of the deal, which closed Aug. 7.
SupportKids was purchased to expand the 8-year-old Dallas company, Feito said.
"Our intention moving forward is to operate in 35 states," he said.
But the immediate goal is to ensure that there is no negative effect on clients, he said. The Austin company once operated in 47 states.
"This is a positive transition for SupportKids, for its clients," Feito said. "We don't anticipate any disruption in services."
SupportKids encountered financial difficulties earlier this year. After defaulting on a loan, it was forced to turn over 20,000 of its 38,000 child-support collection cases to a New Hampshire-based law firm. The cases had been used as collateral on the loan.
ParentFinancial will continue to honor that contract, Feito said.
ParentFinancial, which will move its headquarters to Austin, expects to hire 25 to 30 former SupportKids employees, Feito said.
The Austin company once had 200 employees but laid off an undisclosed number when it lost the 20,000 cases earlier this year.
Some of the first rehires will include workers who have been working without pay, Feito said.
SupportKids CEO Bryon Sehlke and some other executives also will work for Parent-
Financial, Feito said.
Sehlke was unavailable for comment.
Depending on growth, more people could be brought on board next year, Feito said.
I didnt see RJBA in there anywhere?? I wonder what happens to the parents that signed their contract? Did they go out of business? OMG, what a mess!! Thanks Tim for the information and Andrea for the heads up.