Experian succeeds again by buying up a market leader and strengthening its position in Latin America
Experian has announced that it has signed a definitive agreement to acquire the majority of the shares in Computec S. A. The company is a publicly listed company on the Colombian stock exchange and has served notice to the listing authorities in Colombia regarding the definitive agreement. The offer price is COP$10,419 per share, equivalent to a valuation of COP$736bn for 100% of the equity (approximately US$400m). The transaction is subject to regulatory approval and the launching of a delisting tender offer, and is expected to complete in the second half of the calendar year.
Computec was founded in 1968, with bureau operations in Colombia commencing in 1981. In the year ended 31 December 2010, Computec generated consolidated revenue of COP$157bn, of which over 85% arose in Colombia, with the balance in Venezuela and Peru. Consolidated operating income1 was COP$41.7bn. At 31 December 2010, Computec had gross assets of COP$141bn. The transaction is expected to be funded from existing cash resources.
Computec owns the market leading credit bureau in Colombia, including the most extensive database in Colombia on the credit behaviour of consumers. The acquisition of a controlling stake will further strengthen Experian’s Latin American presence, building on the leading market position Experian has established in Brazil. In assessing the opportunities for Computec and the growth prospects of the Colombian credit market, Experian has found many similarities to the assessment it made at the time of the acquisition of a majority stake in Serasa in Brazil in 2007.
Source: Experian Press Release