Equifax
Agrees to Sell Direct Marketing Services Division to
Alliance Data
ATLANTA,
June 2, 2010 -- Equifax Inc. (NYSE: EFX) today announced it has entered into a
definitive agreement to sell substantially all of the assets of its Direct
Marketing Services division to Alliance Data Systems (NYSE: ADS) for $117
million, subject to working capital and other adjustments. The
all-cash transaction is expected to close in approximately 30 days, upon
satisfaction of customary closing conditions.
Equifax
expects the transaction will result in a one-time after-tax gain upon closing of
approximately $0.08 per share, and that the divestiture will be dilutive to 2010
second half earnings per share by approximately four cents per
share. The company intends to use the proceeds from the transaction
for general corporate purposes.
Equifax’s
Direct Marketing Services division is a leading supplier of proprietary
data-driven, integrated marketing solutions operating through three units:
Equifax Direct Marketing Solutions LLC and Equifax Marketing Solutions, LLC
(together “DMS”) and Equifax Database Services, Inc. (“DBS”). DMS
provides U.S. consumer demographic information and DBS provides database
implementation and hosting services.
Alliance
Data Systems is a leading provider of loyalty and marketing solutions derived
from transaction-based data. The company is headquartered in Dallas,
TX. Upon closing, the Direct Marketing Services division will be
integrated into Epsilon, an Alliance Data business that provides data-driven
digital and database marketing services.
About
Equifax (www.equifax.com)
Equifax
empowers businesses and consumers with information they can trust. A global
leader in information solutions, we leverage one of the largest sources of
consumer and commercial data, along with advanced analytics and proprietary
technology, to create customized insights that enrich both the performance of
businesses and the lives of consumers.
With a
strong heritage of innovation and leadership, Equifax continuously delivers
innovative solutions with the highest integrity and reliability.
Businesses – large and small – rely on us for consumer and business credit
intelligence, portfolio management, fraud detection, decisioning technology,
marketing tools, and much more. We empower individual consumers to
manage their personal credit information, protect their identity, and maximize
their financial well-being.
Headquartered
in Atlanta, Georgia, Equifax Inc. operates in the U.S. and 14 other countries
throughout North America, Latin America and Europe. Equifax is a member of
Standard & Poor’s (S&P) 500® Index. Its common stock is traded on the
New York Stock Exchange under the symbol EFX.
Forward-Looking
Statements
This
press release includes forward-looking statements regarding Equifax’s proposed
sale of its direct marketing services division, including statements related to
product and service offerings and businesses of Equifax and ADS and the expected
impact of the transaction on Equifax’s financial results for 2010. Any such
statement may be influenced by a variety of factors, many of which are beyond
the control of Equifax and ADS that could cause actual outcomes and results to
be materially different from those projected, described, expressed or implied in
this press release due to a number of risks and uncertainties. Potential
risks and uncertainties include, but are not limited to, that the transaction
will not close or that the closing may be delayed, and Equifax’s expectations
for the use of the net proceeds from the transaction. Accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what impact they will have on the results of operations or financial condition
of Equifax.
Certain
additional risk factors are set forth in Equifax’s Annual Report on
Form 10-K for the year ended December 31, 2009 under Item 1A, “Risk
Factors”, and its other filings with the Securities and Exchange
Commission. Equifax assumes no obligation to update any forward-looking
statements to reflect events that occur or circumstances that exist after the
date on which they were made.
SOURCE
Equifax Inc.
