We reported recently that TransUnion had acquired Verisk Financial (company announcement).
Our Co-founder Outsell Inc. reported recently on the transaction:
“TransUnion is acquiring Verisk Financial to bolster its capabilities in monitoring consumer financial behavior. As consumers’ financial footprints become increasingly digitized, information giants are evolving their methods of assessing the financial health of consumers.
TransUnion is acquiring Verisk Financial Services for $515 million in cash. Verisk Financial generated a revenue of $143 million in 2021 with a $41 million EBITDA; these figures set the price tag just north of 12x EBITDA, which is in line with Outsell’s valuation model assessment for deals in the Credit and Financial segment. The transaction will close in Q2 2022, subject to regulatory approvals and customary closing conditions.
TransUnion plans to leverage Verisk Financial’s Argus Information & Advisory Services to augment its insight on consumer debit card, credit card, and deposit account behaviors. The combined intelligence will offer a full-wallet view of consumer spending and debt management. Argus will also complement TransUnion’s capabilities in addressing merchant fraud, consumer bankruptcy, and regulatory compliance on behalf of lenders.
Trends that support this acquisition include an economy plagued by a lingering pandemic, geopolitical instability, and large-scale inflation. Together, these market drivers become a catalyst for unpredictable consumer spending and saving. Traditional consumer credit scoring metrics have become less relevant.
Source: Outsell Inc. a Cofounder of BIIA – Copy right: For BIIA members only