- Equifax Inc. (NYSE:EFX) has agreed to acquire Appriss Insights, a portfolio company of Clearlake Capital Group, L.P., and Insight Partners, that provides data used in public and workplace safety, law enforcement, fraud detection and prevention, and healthcare credentialing for $1.825 billion.
- Equifax would receive a tax benefit with a net present value of ~$360 million at the time of purchase.
- Appriss Insights is expected to generate ~$150 million of revenue in FY21, up 30% year-over-year, and the transaction is expected to be strongly accretive to Equifax’s Adjusted EPS in FY22.
- Appriss Insights’ Artificial Intelligence (A.I.)-driven solutions complement Equifax verification products by providing real-time notifications, context-sensitive risk assessments, and actionable insights.
- “Our strong performance and balance sheet allow Equifax to reinvest our cash flow in this accretive and strategic acquisition that will strengthen our largest, fastest-growing business unit – Workforce Solutions – for additional growth by building on our differentiated verifications data and expertise while further diversifying Equifax,” said Equifax CEO Mark W. Begor.
- Appriss Health and Appriss Retail will remain part of Appriss Inc. and are not a part of this transaction. The transaction is expected to close in the second half of 2021.
- Equifax held cash and cash equivalents of $458.1 million as of June 30, 2021.
- Price Action: EFX shares are closed higher by 2.33% at $259.17 on Tuesday.
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