PSA’s Parent Company, Collectors Universe, Sells for $700 Million

On November 30, 2020, Collectors Universe – PSA’s parent company, agreed to sell to a group of investors at $700 million. The group of investors that bought PSA includes entrepreneur and collector Nat Turner. This deal represents 30% over the weighted stock price during the last 60 days in terms of the weighted stock price. 

If you aren’t familiar with PSA, it’s the most popular and leading card grading company in the industry. Although there are other grading companies such as Beckett (BGS), PSA by far stands at the top of the throne. 

During COVID-19, there has been a tremendous increase in the popularity of the sports memorabilia business. PSA was already overwhelmed by the number of people sending in their cards to be graded before 2020; however, the tremendous increase in the hobby caused their system to slow down.

The CEO and President of Collectors Universe, Joseph J. Orlando, will continue to lead the company even after they have acquired PSA and teamed with a group of other investors. Orlando was pleased that the company was able to do this deal successfully. 

The Chairman of the Collectors Universe Board of Directors, A.J. “Bert” Moyer, said, “After careful consideration, we are pleased to have reached an agreement that reflects the remarkable value creation Collectors Universe has achieved through its consistent execution during these challenging times.” This shows how the whole team at Collectors Universe was thrilled to complete this deal. 

Now that the company is transitioning from a public to a private company, Orlando promised that their services will even get better now that PSA has been acquired. Additionally, he was excited about working with new team players and successful businessmen like Nat Turner. 

Turner is one of the prominent investors that Orlando partnered with to acquire PSA. He vowed to offer all he can to expand its capacity, technological abilities, consistency, and accuracy that most people know it for.

Having investors like Turner on board will surely bring more life to the company, thanks to his experience and expertise in the card collection business. He is also a well-known businessman who gained more popularity in 2010 when he sold an advertising and exchange bidding company Invite Media to Google. In 2018, Turner also sold Flatiron Health, one of the companies he co-founded, for $2 billion. 

With the average age of Collectors Universe’s board being much older, having a young and intelligent individual like Nat Turner (34 years) brings some freshness to its top team. Only time will tell, but the future of this company looks to be bright.