Experian has acquired substantially all the assets of Mighty Net, Inc. (Mighty Net), a provider of online credit monitoring services to consumers. The purchase price was US$207.5m.
Founded in 1996, Mighty Net provides online services to US consumers interested in managing their credit behavior. Mighty Net’s key products include bureau reports, bureau scores, credit score tracking and credit file monitoring services, which are provided directly to consumers on a subscription basis. Mighty Net has approximately 680,000 subscribers in the US. Mighty Net’s products are marketed online through its CreditReport.com, CreditScore.com and MyCreditScore.com websites. Mighty Net brands include CreditReport.com. Experian owns FreeCreditReport.com, that name however was tarnished amongst some consumers following charges in 2005 by the US Federal Trade Commission alleging that Experian deceptively marketed ‘free credit reports’ through its website. Experian has more than 8 million US-based ‘consumer’ customers. The acquisition indicates Experian’s determination to further strengthen its market position in the US.
Financials: In the year to 31 December 2009, Mighty Net generated revenue of US$115m and EBIT of US$28m, with expected revenue growth of 10% in the year to 31 December 2010. Certain channels and lines of business at Mighty Net will be discontinued post acquisition. Pro forma revenue from continuing activities is expected to be US$105m in the year to 31 December 2010. Mighty Net was 100% owned by its founders and the assets acquired will form part of Experian’s North America Interactive division. Source: Experian Press Release