Experian PLC on Friday announced its acquisition of Brazil-based digital fraud prevention provider ClearSale SA.
The Dublin-based consumer credit checker said the closing cost of the transaction was R$1.91 billion, or around $350 million, to be funded from Experian’s existing cash resources and by the issuance of Brazilian depositary receipts.
ClearSale offers an end-to-end platform solution to detect fraud in card-not-present transactions, and its 7,400 active clients include some of the largest online retailers, banks and telecommunications companies in Brazil.
ClearSale will combine with the company’s Brazilian arm, Serasa Experian.
Chief Executive Officer Brian Cassin said: ‘We have established a leading position in identity & fraud in Brazil, an attractive, high growth market and one of our strategic growth priorities globally. The acquisition of Clear Sale extends our identity & fraud suite, adding transaction fraud detection to our existing strengths in account opening and account takeover fraud prevention. ClearSale will add to our growth potential in Brazil and is a further step towards our ambition to provide comprehensive identity & fraud and credit risk solutions through our integrated platform.’
Experian expects the acquisition to add revenue of around R$490 million, or approximately $89.2 million, for its first full-year of ownership, as well as benchmark earnings before interest, taxation, depreciation and amortisation of around R$130 million, about $23.7 million.
Shares in Experian were down 1.4% at 3,904.00 pence each in London on Friday afternoon.
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