The acquisition is expected to expand Equifax’s capabilities in the fast-growing Brazilian market, and provides Boa Vista Serviços with access to Equifax’s cloud-native data, products, decisioning and analytical technology
Equifax headquarters. (Credit: Tyler Lahti/Wikipedia)
US-based consumer credit reporting agency Equifax has signed a definitive agreement to acquire Boa Vista Serviços, a large-scale credit bureau based in Brazil, for a total enterprise value of R$3.1bn ($596m).
Under the terms of the agreement, Boa Vista Serviços shareholders are expected to received either R$8 per share in cash, or R$7.20 in cash and 0.0008 of EFX Brazilian Depository Receipt (BDR).
The Boa Vista Serviços shareholders may also receive R$5.33 of Equifax Brasil common shares and R$2.67 in cash or 0.0027 of Equifax BDRs.
The transaction price represents an 89% premium to the Boa Vista Serviços’ last closing share price, and a 185% premium to its enterprise value as on 15 December 2022.
The acquisition was approved by the Boa Vista Serviços Board of Directors.
It is expected to be completed in the second quarter of this year, subject to Boa Vista Serviços’s shareholder approval and other customary closing conditions.
Upon closing of the transaction, the company will become a subsidiary of Equifax Brasil.
In relation with the agreement, Associação Comercial de São Paulo (ACSP), the largest shareholder of Boa Vista Serviços, has agreed to vote in favour of the transaction.
The acquisition is expected to expand Equifax’s capabilities in the fast-growing Brazilian market, and provides Boa Vista Serviços with access to Equifax’s global capabilities.
In addition, the Brazilian company can also access Equifax’s cloud-native data, products, decisioning and analytical technology to support new products and services, and expansion.
The Equifax Cloud, together with the company’s unique data assets, analytical solutions, and Identity and fraud solutions will support Boa Vista Serviços’s digital transformation.
The combined solutions will address the evolving needs of both consumers and lenders in Brazil.
BofA Securities served as financial advisor, while Hogan Lovells and Machado Meyer Advogados served as legal counsels to Equifax, on this transaction.
Equifax CEO Mark W Begor said: “We’re energized to expand Equifax’s reach internationally with the acquisition of Boa Vista Serviços, and look forward to welcoming Boa Vista Serviços’ employees to our global team.
This acquisition will mark an exciting new chapter for Equifax and Boa Vista Serviços customers that will bring powerful new insights to Brazilian lenders and service providers to help them better understand their customers and promote greater financial inclusion to meet the needs of the approximately 34 million unbanked or underbanked consumers in Brazil.
“Strategic, bolt-on acquisitions are core to our EFX2025 growth priorities. Boa Vista Serviços is our 14th acquisition that Equifax has signed or completed in the past 24 months totaling $4.1bn.”