ATLANTA, June 2, 2010 — Equifax Inc. (NYSE: EFX) announced it has entered into a definitive agreement to sell substantially all of the assets of its Direct Marketing Services division to Alliance Data Systems (NYSE: ADS) for $117 million, subject to working capital and other adjustments.   The all-cash transaction is expected to close in approximately 30 days, upon satisfaction of customary closing conditions.   Equifax expects the transaction will result in a one-time after-tax gain upon closing of approximately $0.08 per share, and that the divestiture will be dilutive to 2010 second half earnings per share by approximately four cents per share.  The company intends to use the proceeds from the transaction for general corporate purposes. 

Equifax’s Direct Marketing Services division is a leading supplier of proprietary data-driven, integrated marketing solutions operating through three units: Equifax Direct Marketing Solutions LLC and Equifax Marketing Solutions, LLC (together “DMS”) and Equifax Database Services, Inc. (“DBS”).  DMS provides U.S. consumer demographic information and DBS provides database implementation and hosting services.   Combined 2009 revenues of the business units were US$84 million, down 10% from prior year.

Alliance Data Systems is a leading provider of loyalty and marketing solutions derived from transaction-based data.  The company is headquartered in Dallas, TX.  Upon closing, the Direct Marketing Services division will be integrated into Epsilon, an Alliance Data business that provides data-driven digital and database marketing services.   Source: Equifax Press Release

BIIA Newsletter June I – 2010 Issue