Summary
Equifax Inc. announced on December 3, 2012, through an 8-K filing, a significant move to acquire certain credit services business assets and operations of CSC Credit Services, Inc., a subsidiary of Computer Sciences Corporation. This definitive asset purchase agreement is valued at $1 billion in cash, subject to working capital adjustments, and is expected to close by year-end, contingent on regulatory approvals like the Hart-Scott-Rodino waiting period. This strategic acquisition signals Equifax's intent to expand its market position and service offerings within the credit information sector. To finance this substantial acquisition, Equifax plans to utilize a combination of debt and existing cash. The company has secured a new $350 million, 364-day revolving credit facility, supplementing its existing $500 million senior revolving credit facility. Both facilities are unsecured and subject to covenants, including a maximum leverage ratio of 3.5 to 1.0. The transaction's completion is not dependent on a financing condition, indicating a strong commitment from Equifax to close the deal. The acquisition will also lead to the termination of an existing agreement where CSC's credit reporting agencies utilize Equifax's database services.
Key Highlights
- 1Equifax Inc. to acquire credit services assets from CSC Credit Services, Inc. for $1 billion cash.
- 2Transaction is subject to customary closing conditions, including regulatory approvals (Hart-Scott-Rodino waiting period).
- 3Acquisition expected to be completed by year-end 2012.
- 4Equifax plans to fund the purchase using debt and available cash.
- 5Company has entered into a new $350 million, 364-day revolving credit facility to supplement its existing credit facilities.
- 6The acquisition will result in the termination of an existing services agreement between Equifax and CSC.
- 7Financing for the transaction is not subject to a financing condition.