15th Mar 2018 10:31
LONDON (Alliance News) - FTSE 100-listed Consumer credit services firm Experian PLC said Thursday it agreed to buy UK-consumer finance matching firm ClearScore for an initial GBP275 million.
"In acquiring ClearScore, we will take another important step in our strategy to extend the services we provide to UK consumers," Experian Chief Executive Officer Brian Cassin said. "Our goal is to provide more choice and greater convenience to individuals who want access to personal financial products at the best prices, while also making it easier for credit providers to offer better, more tailored offers to consumers. We look forward to welcoming the ClearScore team to Experian and to including the ClearScore brand as part of our broader offer."
Experian will pay an initial GBP275 million for ClearScore - which has over six million members - with an additional earnout potential contingent on future financial performance. Experian did not provide further detail on the earnout terms.
For the year ended March 2017, Experian generated GBP1.07 billion pretax profit on GBP4.34 billion revenue.
In 2018, Experian said, ClearScore is on track to generate USD55 million in revenue, 50% higher than in 2017. Further "strong" growth is expected in 2019.
Experian anticipates the acquisition to be neutral to earnings before interest and tax in 2018. In 2019, it expects it to contribute USD20 million to Ebit before integration costs.
Further Ebit progress is expected to be underpinned by around USD25 million per annum cost synergies. One-off expenses for integration will be around USD20 million.
Shares in Experian were 0.6% higher at 1,592.81 pence on Thursday.
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