Experian is completely exiting its First American Real Estate Solutions (FARES) joint venture with The First American Corporation.  The latter is exercising its option to buy up Experian’s remaining stake in FARES for around $314m, payable by the end of this year.  Following the completion of this transaction, Experian will no longer have any interest in FARES, having at one point had a 20% stake.

Total gross proceeds from the divestment will be about $432m consisting of proceeds from the disposal of Experian’s interest in FARES to First American ($314m), divesture of shares held in First American (formerly First Advantage shares, $70m) and proceeds from the prior disposal of interest in FARES’ plant management and image document businesses ($48m).  After taxes and other expenses, Experian expects a net cash inflow of about $370m.  In the year to 31 March 2009 FARES contributed $48m to Experian’s earnings before interest and tax.  The joint venture was formed in 1997 with Experian contributing its US property database businesses.  Source: Digital Look

BIIA Newsletter June II – 2010 Issue