8-KOther Events

EQUIFAX INC 8-K Report (Jun 13, 2001)

Filed June 13, 2001For Securities:EFX

Summary

Equifax Inc. (EFX) filed an 8-K on June 13, 2001, to announce a significant corporate restructuring: the approved spin-off of its Payment Services businesses, to be known as Certegy Inc. The spin-off is structured as a special dividend of Certegy shares to Equifax shareholders, with one Certegy share distributed for every two Equifax shares held. This strategic move aims to allow Equifax to focus on its core consumer and commercial information services business, positioning it for future growth in areas such as credit reporting, fraud detection, and marketing services. The filing provides pro forma and normalized financial statements to illustrate Equifax's standalone financial profile post-spin-off. The company highlights its strong historical performance, including significant revenue and operating income growth over the past decade, with operating margins averaging 28%. Equifax anticipates continued growth, projecting sales growth of 7-9% in 2001 and long-term growth of 10% or higher, with fully diluted earnings per share growth of 11-13%.

Key Highlights

  • 1Equifax Inc. announced the approved spin-off of its Payment Services business, Certegy Inc., via a special dividend to shareholders.
  • 2The distribution ratio is one share of Certegy for every two shares of Equifax held.
  • 3Certegy Inc. is expected to commence trading on the NYSE under the symbol 'CEY' on July 9, 2001.
  • 4Equifax will focus on its core consumer and commercial information services business post-spin-off.
  • 5Pro forma and normalized financial statements are provided to show Equifax's standalone financial position.
  • 6The company reports strong historical financial performance with revenue growth of 13% compounded and operating income growth of 17% compounded over the last 10 years.
  • 7Equifax projects sales growth of 7-9% in 2001 and long-term growth of 10%+, with long-term EPS growth of 11-13% and operating margins above 28%.

Frequently Asked Questions

This filing formally announces Equifax's Board of Directors' approval of the spin-off of its Payment Services business, Certegy Inc. It details the distribution plan to shareholders and provides pro forma and normalized financial information to present Equifax as a standalone entity after the separation.

Equifax shareholders of record on June 27, 2001, will receive one share of Certegy common stock for every two shares of Equifax common stock they own. Cash will be paid in lieu of fractional shares.

After the spin-off, Equifax will focus on its core business as a leading source of consumer and commercial information, facilitating transactions worldwide. Its strategy involves product innovation, new market extension, technology leverage, and geographic expansion.

Equifax expects sales growth of 7-9% in 2001 and long-term growth of 10% or higher. Long-term fully diluted earnings per share growth is projected at 11-13%, with operating margins expected to remain above 28%.