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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): July 1, 1998
NCO Group, Inc.
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(Exact name of Registrant as specified in its charter)
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Pennsylvania 0-21639 23-2858652
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification Number)
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515 Pennsylvania Avenue
Fort Washington, Pennsylvania 19034
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (215) 793-9300
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Item 5. Other Events
Acquisition of MedSource, Inc.
On July 1, 1998, the NCO Group, Inc. ("NCO" or the "Company") acquired all
of the outstanding stock of MedSource, Inc. ("MedSource") for approximately
$17.7 million in cash. In connection with the acquisition, the Company repaid
debt of approximately $17.3 million.
Founded in 1997, MedSource provides traditional accounts receivable
management services and pre-delinquency outsourcing services primarily to
hospitals located throughout the United States. Pre-delinquency outsourcing
services include insurance billing and follow-up, insurance claim resolution,
private pay collections, and outsourcing of central business office functions.
Since its inception, MedSource has completed four acquisitions of other
accounts receivable management companies which specialize in providing services
to the healthcare industry. Headquartered in Goodlettsville, Tennessee,
MedSource has additional offices located in Phoenix, Arizona; Springfield,
Missouri; Chicago Heights, Illinois; Waterford, Michigan; Johnstown,
Pennsylvania; and Mount Laurel, New Jersey. For the fiscal year ended December
31, 1997 (on a pro forma basis) and the three months ended March 31, 1998,
MedSource's revenues were approximately $22.7 million and $5.3 million,
respectively. The acquisition of MedSource significantly enhances NCO's market
position as a leading provider of accounts receivable management services to
the healthcare sector.
Historical and pro forma financial information with respect to MedSource
was previously reported or incorporated by reference in the Company's Current
Report on Form 8-K filed on May 12, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NCO GROUP, INC.
By: /s/ Steven L. Winokur
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Executive Vice President, Finance
and Chief Financial Officer
Date: July 2, 1998
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