Debt collection firm Encore Capital Group Inc. reached agreement to acquire Asset Acceptance Capital Corp. in a $200 million deal in the hope of strengthening its stance in the industry.

Encore is offering $6.50 per share for Asset Acceptance, representing a premium of 13% to the latter's closing price.

Asset Acceptance is a leading purchaser and collector of charged-off consumer debt based in Warren, Michigan. Its shareholders may decide on whether or not they receive their consideration in Encore stake or in cash.

Encore previously acquired in May last year tax lien firm Propel Financial for $187 million. Its shares closed at $30.07.