London-listed information services company Experian has agreed to acquire South African credit bureau, Compuscan, for a cash consideration of R3.7 billion ($263 million).
“We are delighted to announce that Experian has agreed to acquire Compuscan. We have a long track record of investment in South Africa, where for many years we have helped businesses thrive through the provision of credit data and decisioning tools,” said Experian CEO, Brian Cassin.
“Millions of people across Africa need access to financial services. By combining forces with Compuscan, we will be better positioned to serve the people and businesses of this region and be an enabler of growth in consumer and business credit, identity management and financial inclusion.”
The transaction is expected to be funded from existing cash resources. The transaction is subject to approval by the Competition Commission in South Africa.
It is expected to complete during the first quarter of financial year ending March 2020.
For the year ending 31 December 2018, Compuscan is expected to generate R489 million in revenue, growing to R532 million in the year ending December 2019.
This compares to Experian revenues in South Africa of around US$40 million. “We expect the transaction to be accretive to Benchmark EPS in its first full year of ownership, Experian said.