REG - Experian plc - Experian to acquire Illion in ANZ

ExperianAnnouncement

04/04/2024 18:00

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RNS Number : 4039J  Experian plc  04 April 2024

 

news release

 
 

EXPERIAN TO ACQUIRE ILLION IN AUSTRALIA AND NEW ZEALAND

 

4 April 2024 - Experian, the global information services company, is pleased
to announce that it has signed an agreement to acquire illion, one of the
leading consumer and commercial credit bureaus in Australia and New Zealand.

 

Brian Cassin, Chief Executive Officer said:

"We are delighted to announce that Experian has entered into an agreement to
acquire illion, a highly complementary business to Experian in Australia and
New Zealand (A/NZ), which will enhance the competitive dynamics in this
important market. This marks a pivotal step in our longstanding commitment to
the region and reinforces our dedication to delivering exceptional value and
more choice to clients in A/NZ."

 

Overview and Strategic Rationale

Established in 1986 in Australia, illion is a bureau provider of consumer
credit reporting, commercial credit reporting, and identity and verification
solutions in Australia and New Zealand.

 

Our strategy in EMEA and Asia Pacific is to focus on markets where we have a
clear opportunity to operate at scale and deliver innovation-led growth.
Experian has successfully operated in A/NZ for over 30 years, serving lending
and other institutions with decisioning software, open data and data quality
services, as well as consumer bureau services. Australia is currently
Experian's fifth largest country of operation by revenue.

 

The Australian lending market, like many of our developed markets, is on a
journey to help widen access to credit, lower lending costs and improve
digital banking services for consumers and businesses. A series of regulatory
reforms in Australia have introduced comprehensive (positive) data and open
data services and have widened the array of data assets, scores and analytical
insights being adopted by banks and other institutions. This has enhanced
appetite for analytical tools and data-driven services, expanding our
addressable market opportunity.

 

The acquisition of illion will enable Experian to make full use of this
opportunity and offer enhanced choice in A/NZ by providing a meaningful
competitive alternative to help businesses accelerate the adoption of digital
services. It is highly complementary and synergistic to Experian A/NZ, the
combination of which would present a more complete service for clients, adding
depth in consumer bureau services, an attractive position in commercial credit
bureau services as well as capabilities in identity management solutions. This
compares to Experian's strengths in analytical product capability, decisioning
software and certain open banking solutions.

 

More businesses in A/NZ will benefit from Experian's leading global platforms
to speed up the process of credit granting, enhance digital experiences for
users, reduce fraudulent exposure and improve efficiency in banking and other
sectors. Experian will be well positioned to introduce more innovation in
Australia through capabilities such as the Experian Ascend unified platform,
which encompasses Experian's sophisticated analytics, and our PowerCurve
decisioning suite.

 

Financial information

The acquisition of 100% of illion is for a total consideration of up to A$820m
(c.US$532m*), payable on completion of the transaction and to be funded from
Experian's existing cash resources. The acquisition is subject to regulatory
review by the competition authority in Australia which we anticipate will
conclude in the second half of calendar year 2024. In the first full year of
ownership we expect the acquisition to add revenues of c. A$175m and
Benchmark EBITDA of c. A$65m. This compares to Experian revenues in A/NZ which
are expected to be c. A$115m in FY24.

 

* AUS$/US$ spot exchange rate of 1.54 as at 3 April 2024

 

Contact:

Experian

Nadia Ridout-Jamieson          Investor queries     +44 (0)20
3042 4220

Gerry Tschopp, Nick Jones    Media queries

 

Teneo

Graeme Wilson and Louise Male
 +44 (0)20 7353 4200

 

 

 

About Experian

Experian is the world's leading global information services company. During
life's big moments - from buying a home or a car, to sending a child to
college, to growing a business by connecting with new customers - we empower
consumers and our clients to manage their data with confidence. We help
individuals to take financial control and access financial services,
businesses to make smarter decisions and thrive, lenders to lend more
responsibly, and organisations to prevent identity fraud and crime.

 

We have 22,400 people operating across 32 countries and every day we're
investing in new technologies, talented people, and innovation to help all our
clients maximise every opportunity. With corporate headquarters in Dublin,
Ireland, we are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.

 

Learn more at www.experianplc.com (http://www.experianplc.com/)  or visit
our global content hub at our global news blog for the latest news and
insights from the Group.

 

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