TransUnion has acquired a 71% ownership interest in CIFIN (Central de Informacion Financiera), one of two primary Colombian credit bureaus.
Colombia is one of the largest Latin American economies and has been experiencing strong growth and the rapid development of an emerging middle class. TransUnion is a market leader in high-growth countries around the globe ranging from the Philippines to India to Mexico, as well as other Latin American countries. TransUnion has maintained a presence in Colombia for many years, building the first risk score in the market over a decade ago.
CIFIN was established 35 years ago and covers both positive and negative data on consumer behavior. This full-file data empowers lenders to make holistic decisions and reward responsible behavior, enabling greater financial inclusion for consumers.
“CIFIN is a great company in an attractive market with a long and successful history of using data to deliver differentiated insights to customers,” said David Neenan, president of TransUnion’s International business. “In line with TransUnion’s growth strategy, we identified CIFIN as an opportunity for acquisition several years ago, and the time is right now. Joining forces with CIFIN is a terrific opportunity to leverage our global operating model and technology platform to accelerate performance.”
CIFIN offers a wide portfolio of products and services for Colombian consumers and customers across multiple industries, including financial services, insurance, telecommunications, retail and manufacturing. TransUnion will bring further innovation to the market through the introduction of advanced analytics, decisioning solutions, an enhanced direct-to-consumer platform, and expansion into adjacent industries such as insurance.
“CIFIN’s customers have a strong appetite for new solutions proven in markets around the globe,” said Maria Olga Rehbein, TransUnion’s regional president in Latin America. “As the Colombian economy grows, we are well positioned to help businesses manage risk and consumers access the services that lead to a higher quality of life.”
This acquisition strengthens TransUnion’s Latin America portfolio, where the company is already the market leader in five Central American countries and has a strong presence in Brazil, Chile and Mexico. The largest Colombian banks have been investing significantly in Central America, and TransUnion will leverage its regional footprint to support their expansion.
TransUnion acquired its initial 71% ownership interest at a price of COP$426.000 million (approximately USD$127 million) on February 8, 2016, financed through its revolving credit facility. Management will discuss the financial impact of the acquisition in TransUnion’s earnings call on February 16, 2016.
TransUnion expects to acquire the remaining shares in 2016, including a small portion following the conclusion of certain mandatory regulatory processes. CIFIN was previously owned by Colombia’s top banks, who have agreed to remain close partners to TransUnion.
Inverlink served as adviser to TransUnion on the transaction.
Source: TransUnion Press Release