19th Apr 2016 06:18
LONDON (Alliance News) - Experian PLC, the FTSE 100 information services company, on Tuesday said it agreed to buy CSIdentity Corp, a US provider of consumer identity management and fraud detection services, for USD360.0 million in cash from private equity and other investors, management and employees.
In a statement, Experian said its earnings will receive an immediate boost from the acquisition, which will be funded with bank borrowings already in place, and highlighted the "significant" opportunities for "cost synergies" over the next four years. Experian expects to report one-off costs of USD8.0 million in the first 12 months of acquisition to integrate CSID and achieve those cost savings.
In the year ended March 31, the consolidation of CSID would have added USD103 million incremental revenue and USD21 million incremental earnings before interest and tax to Experian's consolidated financial results, the statement said. Taking into account the full year revenue from recent contracted client wins, Experian said it expects the acquisition of CSID to add annualised incremental revenue of about USD120 million and EBIT of about USD30 million for the year ending March 31, 2017.
The US identity protection market is estimated to be a USD1.6 billion industry, according to Experian.
"By combining Experian and CSID capabilities, we will provide best-in-class products to give consumers greater control over their identity and credit information in one proposition. We look forward to welcoming the CSID team to Experian and building stronger and ever more compelling services which help consumers to protect, manage and make the most of their data," Experian Chief Executive Officer Brian Cassin said.
The acquisition is subject to regulatory approval in the US.
By Samuel Agini; [email protected]; @samuelagini
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