Experian to Acquire Brazilian Credit Bureau for $1.2 billion

Experian, the global information solutions company, announced today that it has agreed to acquire an initial 65% stake in Serasa, the market-leading credit bureau in Brazil and operator of the fourth largest credit bureau in the world, from a consortium of Brazilian banks. The stake will increase to 70% over the next six months. The purchase price for the initial stake is R$2.32 billion ($1.2 billion), inclusive of transaction costs, net of cash, and will be funded from Experian’s existing facilities.

The transaction, which is expected to be earnings neutral in the first full fiscal year of ownership and earnings enhancing thereafter, is expected to complete by the end of June.

Don Robert, Chief Executive of Experian, commented, “The acquisition of Serasa represents a unique and transformational opportunity for Experian. It propels us to a market leading position in one of the most attractive growth markets for credit products globally, and we see significant potential as we deploy our world-class value-added products. It fits our strategic objectives of owning market-leading credit bureaux in key markets around the world and of expansion into exciting emerging economies. We are also delighted to have the continuing support of Brazil’s largest banks, as both shareholders and clients of Serasa.”

Serasa consolidates Experian’s global leadership position in Credit Services. Following this acquisition, Experian will control three of the top five credit bureaus worldwide (US, UK and Brazil), and hold market-leading positions in other major credit markets.  The acquisition also places Experian in an excellent position to benefit from the high growth Brazilian credit market.