Experian completes acquisition of Passport Health Communications

experianExperian, the global information services company, has completed the acquisition of Passport Health Communications.

Passport Health Communications is a  provider of data, analytics and software in the US healthcare payments market. The purchase price is $850 million. Revenues  are largely subscription based. In the year ending 31 December 2013, Passport Health is expected to generate revenue of US$121m, representing organic growth of 23%, and EBIT of US$30m. In the year ending 31 December 2014, Experian expects Passport Health revenue to reach approximately US$145m (of which 84% is already booked and contracted), with EBIT margins in the high twenties.

For more information see Experian acquires Passport Health Communications for $850M – posted on November 6, 2013.

Ireland, Dublin and UK, Nottingham

Related articles:

Experian acquires The 41st Parameter, Inc

experianExperian, a global information services company, is to acquire The 41st Parameter, Inc, a  provider of fraud detection services, based in the US. The aggregate purchase price for all outstanding stock, stock options and warrants of 41st Parameter is US$324m, of which US$14m is subject to limited, two-year earn-out provisions, and will be funded from Experian’s existing cash resources.  The transaction is subject to customary closing conditions.

41stFor the year ending 31 December 2013, Experian expects 41st Parameter to deliver approximately US$26m of revenue, of which over 95% is booked and contracted. Revenues are licence-based and are recognised over the life of the contract, which is typically 2-3 years in duration. Client renewal rates exceed 95%.

Since incorporation, 41st Parameter has experienced strong growth, with compound annual growth in revenue over the past two years of over 40%. The contracted nature of the business model provides good forward visibility, and Experian expects to sustain growth in line with historic rates over the next twelve months. The acquisition is expected to be broadly EPS neutral in the year ending 31 March 2014.

Incorporated in 2004, 41st Parameter products use device identification to prevent fraud. Clients use 41st Parameter’s products to enable consumers to complete transactions on the web quickly and securely, reducing fraud losses while simultaneously authenticating consumers with minimal intrusion. Clients also use 41st Parameter products to enhance internal operational efficiency by reducing the number of false detections of potential fraud.  Its clients include financial institutions, travel web sites, eCommerce merchants and customers in the digital media segment.

Ireland, Dublin & USA, San Jose, CA

Related articles:

Experian – Preliminary results for the year ended 31 March 2013

experianExperian, the  information services company, has issued its financial results for the year ended 31 March 2013.

More details are available on the Experian website at www.experianplc.com

Strategic highlights

  • Strong FY13 performance; considerable strategic progress with our global growth programme gaining momentum and delivering strong results.
  • Notable performances from North America and Latin America, particularly in Credit Services, and from Consumer Services in the UK&I.

Financial highlights

  • Revenue from continuing activities up 10%, at constant exchange rates. Organic revenue growth of 8%. Total revenue from continuing activities up 6%. Total Group revenue of US$4.7bn (2012: US$4.5bn).
  • Strong margin progression. EBIT margin from continuing activities up 40 basis points to 26.6%. EBIT from continuing activities up 13%, at constant exchange rates. Total EBIT from continuing operations of US$1,253m up 7%.
  • Profit before tax from continuing operations of US$440m (2012: US$689m), after an IFRS charge of US$558m (2012: US$325m) from the movement in the Serasa put option.
  • Benchmark profit before tax of US$1,195m, up 6%. Benchmark EPS of 85.7 US cents, up 9%. Basic EPS from continuing operations of 25.2 US cents (2012: 66.8 US cents).
  • Net debt of US$2,938m at 31 March 2013. 94% conversion of EBIT into operating cash flow.

Shareholder returns

  • Second interim dividend of 24.00 US cents per ordinary share, to give full-year dividend of 34.75 US cents per ordinary share, up 9%.
  • Plan to initiate a share purchase programme totalling US$500m over the next 12 months (inclusive of share purchases in respect of employee share plans that vest).

Sir John Peace, Chairman, commented, “Experian has delivered excellent financial results and has built firm foundations to sustain premium performance into the future. In keeping with our capital strategy, which seeks to balance growth investment with returns to shareholders, we are today announcing a further share repurchase programme, along with a 9% increase in our full-year dividend.”

UK, London

Related articles:

Sale of PriceGrabber and North America online lead generation activities for up to $110M

Experian has completed the sale of its price comparison shopping business (PriceGrabber) and its North America online lead generation activities (LowerMyBills and ClassesUSA) to the management team of those businesses.

The gross consideration is $80 million, consisting of US$2m cash at closing and a US$78m loan note. In addition further consideration is available to Experian if defined profit targets are achieved over time and in certain other circumstances, up to a fully inclusive total of US$110m. In respect of the transaction, Experian expects to realise cash tax relief of approximately US$120m over the next two years.

Last month a $175m deal with Ybrant Digital, a marketing company based in Hyderabad, to buy PriceGrabber and LowerMyBills fell through.

Don Robert, Chief Executive of Experian said:

“Over the past four years, we have focused our strategy on extending our global lead in credit information and analytics, digital marketing services and consumer services. As part of that process, we designated PriceGrabber and the lead generation activities as non-core operations, believing that they would be best developed by an independent owner. We thank all our friends and colleagues at these businesses for their support over the years and wish them every future success.”

For the year ended 31 March 2012, revenues for the businesses sold were US$283m and EBIT was US$20m.

UK, London & USA, Los Angeles, CA

Related articles: