Experian Share Discussion Threads

[hotfinance14] 04/4/2024 18:19

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

[imperial3] 25/3/2024 21:34

Nice to know.

[hotfinance14] 25/3/2024 18:55

Experian edged up 0.41% after JPMorgan Cazenove identified it as a top pick in the European business services sector, along with Bureau Veritas, both rated 'overweight'.

“Experian remains our most-preferred long-term pick in European business services, and a top pick for the rest of 2024,” it said.

“We have confidence the company will grow at least high single digit percentage organically in the medium term supported by its high-quality portfolio of new products at different stages of development.

“Experian has a strong balance sheet and opportunities for value-add acquisitions, on top of continued organic investments.”

Reporting by Josh White for Sharecast.com.

[hotfinance14] 06/3/2024 20:17

Jefferies has upgraded its rating on Experian from 'hold' to 'buy' and hiked its target price by nearly 40%, saying that growth is at an inflection point for the data analytics and credit ratings agency.

"We present new analysis on Brazilian credit and global web traffic/app usage that gives us confidence on inflecting growth in Experian's Latam division and B2C activities. We believe both dynamics are underappreciated by consensus," Jefferies said in a research report on Wednesday.

Meanwhile, credit volume projections in the US are pointing to a stabilisation through most of 2024, with "early signs of a recovery" in the second half of 2025.

The broker said some $2.8bn to $4.0bn could be spent on M&A over the next 12 months – "either data assets and/or bolt-on capabilities in areas of strategic focus".

Regarding the stock's valuation, Jefferies said Experian's shares are trading at the bottom of its recent range, and was currently trading at a 15% discount to similar peers on a price-to-earnings basis.

"We believe that as the market focus moves past volume uncertainties, the narrative will shift toward recognising the strong structural growth and product innovation embedded in Experian," the broker said.

[imperial3] 16/1/2024 10:09

Certainly encouraging.

[hotfinance14] 16/1/2024 07:24

Very positive trading update today.

[hotfinance14] 14/1/2024 09:02

Oroactive artice :

[hotfinance14] 03/1/2024 19:21

Citi has lifted its target price for data analytics and consumer credit reporting group Experian from 2,893.0p to 3,122.0p after a near-30% jump in the stock in the past two months but maintained a 'neutral' rating on the stock.

Citi said back in August that while US non-mortgage credit flows had moderated, the full impact of increases in credit card rates may not have been seen. Historical analysis suggests that credit flows may not have yet bottomed out, driving its cautious stance on Experian's outlook.

Since the start of November – which Citi pointed out was when the ten-year US Treasury yield peaked around the 5% mark – Experian's share price has surged by 29%. The outperformance means the stock's price-to-earnings ratio has risen from around 22x to 26x, near its peak see in the spring of 2022.

"Our new analysis of historical interest rate hike cycles suggests that it is likely that credit flows will trough after the Fed Funds rates starts to fall," Citi said. "With this in mind, we reduce our organic growth forecast for FY25E from 6.3% to 5.6%—below company-compiled consensus at 6.9%."

[imperial3] 14/12/2023 10:30

Shooting up.

[imperial3] 11/12/2023 15:37

Absolutely!

[davenpd] 11/12/2023 14:54

Flying again!

[imperial3] 09/12/2023 00:05

Momentum being maintained.

[imperial3] 06/12/2023 14:06

Wow! Storming ahead currently.

[imperial3] 06/12/2023 10:58

£30 breached for now.

[hotfinance14] 16/11/2023 08:49

Should see an share price of £30 very soon.

[imperial3] 15/11/2023 16:53

What a wonderful share price performance today.Nothing more to be said by DaybyDay!

[hotfinance14] 15/11/2023 08:43

Excellent results announed today.

[imperial3] 25/10/2023 22:04

From todays Daily Mail.French research company DaybyDay downgraded the credit scorer from "hold " to "sell". I hope they are proved wrong!

[dov] 24/10/2023 16:35

Transunion down 25% must have been pretty shocking

[bulltradept] 24/10/2023 16:29

I was probably putting the poor bank results together and extrapolating .

[dov] 24/10/2023 16:18

Barclays thing ?

[bulltradept] 24/10/2023 15:46

I suppose the Barclays trhing has messed it up.

[liam1om] 24/10/2023 15:38

Related to US peer TransUnion poor results today.

[bulltradept] 24/10/2023 15:30

On a technical basis, there is a gap to be closed at £24.56, if you believe in that?