Summary
Equifax Inc. (EFX) announced on April 5, 2010, a significant divestiture through the sale of its Equifax Enabling Technologies LLC unit. This unit primarily comprises the APPRO suite of loan origination software. The transaction is valued at $72.4 million, though this figure is subject to certain adjustments. This strategic move signals Equifax's intention to streamline its operations and focus on its core credit reporting and related services businesses. For investors, this sale represents a cash infusion and a potential refocusing of the company's resources. The divestiture of a non-core technology asset allows Equifax to concentrate on enhancing its primary revenue streams and potentially improving profitability by shedding a business segment that may not align with its long-term strategic direction in the credit information services industry.
Key Highlights
- 1Equifax Inc. is selling its Equifax Enabling Technologies LLC unit.
- 2The unit includes the APPRO suite of loan origination software.
- 3The sale price is $72.4 million, subject to adjustments.
- 4The buyer is CRIF Corporation, an affiliate of Italian credit reporting firm CRIF S.p.A.
- 5This transaction represents a strategic divestiture of a non-core asset.
- 6The sale is expected to provide Equifax with cash and allow for a strategic refocusing.