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 or
visit our global content hub at our global news blog for the latest
news and insights from the Group.