ATLANTA, Aug. 10, 2021 /PRNewswire/ -- Equifax®
(NYSE: EFX) a global data, analytics and technology company has
signed a definitive agreement to acquire Appriss Insights, a
trusted and comprehensive source of risk and criminal justice
intelligence, for $1.825 billion. In
conjunction with the acquisition, Equifax will receive a tax
benefit with a net present value at time of purchase of
approximately $360 million. Appriss
Insights, a portfolio company of Clearlake Capital Group, L.P.
(together with its affiliates, "Clearlake") and Insight Partners,
provides data used in public and workplace safety, law enforcement,
fraud detection and prevention, and healthcare credentialing. This
acquisition will expand the breadth of differentiated data sources
"Only Equifax" can provide, expanding the company's market-leading
and fast growing Workforce Solutions verification capabilities,
enhancing identity and fraud prevention offerings, advancing the
strategy for a comprehensive Workforce Solutions data hub, and
helping public and private organizations tap into timely,
decision-critical data that helps employers reduce workforce risk
and communities improve delivery of government entitlement
programs. Appriss Insights is expected to generate approximately
$150 million of revenue in 2021, up
30% over last year, and the transaction is expected to be strongly
accretive to Equifax Adjusted EPS in 2022. An investor call
and webcast on the agreement will be held on August 10, 2021 at 8:30
a.m. Eastern Time (ET).
"The acquisition of Appriss Insights' industry-leading data
platforms will further position Equifax as the resource of choice
for public and private sector decision intelligence," said
Mark W. Begor, CEO of Equifax. "Our
strong performance and balance sheet allow Equifax to reinvest our
cash flow in this accretive and strategic acquisition that will
strengthen our largest, fastest-growing business unit - Workforce
Solutions - for additional growth by building on our differentiated
verifications data and expertise while further diversifying
Equifax. We are extending the scope of our verification
capabilities beyond income and employment with Appriss Insights'
unique data assets which feature industry-leading automation,
coverage and accuracy."
Appriss Insights will expand Equifax relationships with
employers, background screeners, and state and federal government
agencies, extending Equifax reach into the $5 billion U.S. talent acquisition market and
$2 billion U.S. government social
services delivery market - areas seeing increasing demand for
criminal background checks and continuous monitoring services.
Appriss Insights was founded in 1994 with the creation of the
VINE® network, a proprietary victim notification network that
empowers victims with timely and reliable information regarding
incarcerated persons. VINE uses Appriss' robust incarceration data
network to deliver more than 25 million notifications every year
and is utilized by 47 states and the territory of Guam to protect crime victims. Appriss
Insights maintains the nation's most comprehensive and up-to-date
incarceration data network with more than 170 million
historical booking records accounting for over 90 percent of near
real-time incarcerations in the United
States. The company also has built a proprietary national
criminal justice database, NCIS™, the industry's most extensive and
flexible national criminal file. In addition to helping keep crime
victims safe, these differentiated data assets are used in
background checks within the hiring process to help identify and
mitigate people-based risk. They also are used by law enforcement
and government agencies to support active investigations and aid in
the efficient delivery of government entitlement programs, helping
to get much-needed benefits to those who are eligible while
mitigating fraud and reducing waste.
"Deeper data insights drive better decisions, whether you are an
employer, background screener, healthcare provider, or social
service agency," said Rudy Ploder,
president of Equifax Workforce Solutions. "Together with Appriss
Insights and its employees, Equifax Workforce Solutions will
accelerate the development of new services leveraging our market
leading The Work Number® database of income and employment
information alongside unique data assets from Appriss Insights.
With this acquisition, we are advancing our plan to build out a
comprehensive data hub for verifications and monitoring, helping
fuel better informed decisions for our public and private sector
customers."
"More than 20 federal agencies as well as state agencies in all
50 states trust Appriss Insights' cloud-based services, as do
thousands of employers and background screeners," said Brian Matthews, president of Appriss Insights.
"The combination of Appriss Insights and Equifax presents exciting
opportunities to grow these partner relationships. We are energized
to join forces with Equifax to help more individuals, agencies and
organizations expand their verification and monitoring services
with continuous, real-time access to reliable data."
Appriss Insights' Artificial Intelligence (AI)-driven solutions
complement Equifax verification products by providing real-time
notifications, context-sensitive risk assessments, and actionable
insights. Both Equifax and Appriss Insights leverage cloud-native
infrastructures that drive faster delivery of solutions to
customers and enable them to more quickly realize the benefits of
new services and technologies.
Additional Appriss Insights offerings that will enter Equifax
into new markets and expand the company's service and support for
government and commercial organizations include:
- The National Precursor Log Exchange (NPLEx), a real-time
electronic logging and compliance system that tracks sales of
over-the-counter (OTC) cold and allergy medications containing
pseudoephedrine (PSE), precursors to the illegal drug,
methamphetamine.
- The ProviderSafe™ set of database solutions and services
designed to streamline healthcare credentialing and compliance with
faster, more comprehensive screening services for the healthcare
industry.
Appriss Insights will continue to be led by Brian Matthews and will be based in Louisville, Kentucky. Its employees will join
the Equifax Workforce Solutions business. Appriss Health and
Appriss Retail will remain part of Appriss Inc. and are not a part
of this transaction. The transaction is subject to customary
closing conditions and regulatory review and is expected to close
in the second half of 2021.
J.P. Morgan acted as the sole financial advisor and King &
Spalding LLP served as the legal advisor to Equifax.
Conference Call and Audio Webcast
Equifax will host a
conference call at 8:30 am ET on
August 10 in which senior management
will discuss the Appriss acquisition. Related presentation
materials will be published on investor.equifax.com on
August 10 at 6:30 am ET.
Investor Conference Call:
US/Canada: (877) 559-1190
International: (201) 389-0916
Please dial the appropriate number 5-10 minutes prior to the
call to complete registration. Name and affiliation/company are
required to join the call.
Webcast:
To view the webcast and slide presentation, please click the link
and enter your information to be connected. The link becomes active
15 minutes prior to the scheduled start time.
FORWARD-LOOKING STATEMENTS
This release contains
forward-looking statements and forward-looking
information. All statements that address operating performance
and events or developments that we expect or anticipate will occur
in the future, including statements relating to our future
financial and operating results, our strategy, our ability to
successfully consummate the proposed transaction, the expected
financial and operational benefits, synergies and growth from the
proposed transaction, our ability to integrate Appriss Insights and
its products, services, technologies, IT systems and personnel into
our operations, the impact of COVID-19 and changes in U.S. and
worldwide economic conditions, and similar statements about our
outlook and our business plans are forward-looking statements. We
believe these forward-looking statements are reasonable as and when
made. However, forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. These risks and uncertainties include, but are not
limited to, those described in our 2020 Form 10-K and subsequent
SEC filings. As a result of such risks and uncertainties, we urge
you not to place undue reliance on any forward-looking statements.
Forward-looking statements speak only as of the date when made. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe
knowledge drives progress. As a global data, analytics, and
technology company, we play an essential role in the global economy
by helping financial institutions, companies, employers, and
government agencies make critical decisions with greater
confidence. Our unique blend of differentiated data, analytics, and
cloud technology drives insights to power decisions to move people
forward. Headquartered in Atlanta
and supported by more than 12,000 employees worldwide, Equifax
operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia
Pacific region. For more information, visit Equifax.com
FOR MORE INFORMATION
Kate
Walker for Equifax
mediainquiries@equifax.com
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SOURCE Equifax Inc.