10th Dec 2018 14:05
LONDON (Alliance News) - Experian PLC said Monday that it will buy South Africa based credit checker CSH Group (Pty) Ltd, trading as Compuscan, for cash consideration of ZAR3.72 billion, equivalent to around GBP205.6 million.
"By combining forces with Compuscan, we will be better positioned to serve the people and businesses of this region and be an enabler of growth in consumer and business credit, identity management and financial inclusion. This is an important transaction for our business in South Africa and will provide opportunities more broadly across the African continent," Chief Executive Brian Cassin said.
The London-listed company said the Compuscan acquisition will enhance services to business-to-business customers and consumers and will deliver substantial operational synergies.
Experian intends to fund the acquisition from existing cash resources and expects the transaction to be accretive to adjusted earnings per share in its first full year of ownership.
For 2018, Compuscan is expected to generate ZAR489 million in revenue, growing to ZAR532 million in 2019. The deal is expected to close in the first quarter of the Experian's financial year to March 31, 2020.
Shares in the consumer credit report provider were trading 0.2% higher at 1,865.50 pence each.
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