Updates

Experian - Buys credit bureau in Brazil

August 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Experian has agreed to acquire a 65% stake in Serasa, the market leading credit bureau in Brazil and fourth largest operator in the world. The purchase price of US$1.2bn will be funded from Experian’s existing facilities and the deal is expected to be earnings neutral in the first full year and earnings enhancing thereafter. Serasa, which has a 60% share of the Brazilian credit bureau market, has a decent financial record with sales increasing 22% to US$313m in the year ended 31 December, which brought about a 28% increase in operating profit to US$71m. Growth prospects are excellent given that its market is still in the early stages of development and credit outstanding as a proportion of GDP is low compared to more mature ...

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