Experian announced it has entered into a conditional agreement to acquire a further interest in Serasa S.A. (“Serasa”). Serasa is the market leading credit bureau in Brazil in which Experian already owns a 70% stake. Experian has agreed to acquire a further 29.6% interest to take its holding to 99.6%.
The agreed consideration is R$3.1bn (US$1.5bn) plus a cash adjustment to the date of completion. The transaction is to be satisfied in cash and fully funded from existing banking facilities.
Serasa is one of the largest credit bureau in the world and is the market leader in Brazil, with approximately 60% market share. Founded in 1968, Serasa owns the most extensive databases in Brazil on the credit behaviour of consumers and companies. It plays an active role in most credit and business related decisions made in Brazil on a daily basis.
Serasa has performed strongly under Experian’s ownership, delivering, on average, annual revenue growth of 20% and EBIT growth of 28% over the last three years (at constant currency). In Experian’s consolidated financial statements for the year ended 31 March 2012, Serasa generated revenues of R$1,479m (US$870m) and EBIT of R$531m (US$312m)4. In recent trading, Serasa has continued to perform well and in line with our expectations.
In 2007 Experian paid $1.2bn for a 65% equity stake in Serasa. It acquired a further 5% for $72m. The latest transaction of a 29.6% stake was $ 1.5bn brings the total investment in Serasa to US$2.772bn.
Source: Experian Press Release