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Experian to buy ClearScore for £275m
Consumer credit reporting agency Experian has agreed to buy credit-checking firm ClearScore for £275m.
Experian said the acquisition will combine two well-known, high-growth UK consumer brands, both of which will be retained. It will also bring together two businesses with complementary assets and skills to improve outcomes for consumers.
For the calendar year 2018, ClearScore - which provides free access to credit reports and scores and introduces consumers to personal financial products and offers which are best suited to their individual circumstances - is on track to generate revenue of around $55m, up 50% on the previous year.
The earnings before interest and tax contribution to Experian is expected to be neutral in 2018, rising to around $20m in 2019, before integration costs and the company expects to record one-off expenses of $20m to integrate the business and realise the planned synergies.
On top of the initial purchase price, there is an earn-out potential contingent on achieving future financial performance. The deal is expected to close later this year and to be accretive to benchmark earnings in the first full fiscal year of ownership.
Chief executive officer Brian Cassin said: "In acquiring ClearScore, we will take another important step in our strategy to extend the services we provide to UK consumers. Our goal is to provide more choice and greater convenience to individuals who want access to personal financial products at the best prices, while also making it easier for credit providers to offer better, more tailored offers to consumers.
"We look forward to welcoming the ClearScore team to Experian and to including the ClearScore brand as part of our broader offer."
To date, ClearScore has enrolled over 6 million members in the UK through its free membership model.
At 1000 GMT, Experian shares were up 0.7% to 1,594.50p.