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Borrowers are paying down their debts across a number of credit categories — with the big exception being student loans, according to new data published by Equifax.
August 24 -
The new tool, Equifax says, monitors identities across dozens of industries and thousands of banks.
July 24
Equifax (EFX) has agreed to buy the credit services business of Computer Sciences (CSC) for $1 billion in cash.
The deal for CSC Credit Services is expected to "be a catalyst for the long-term growth" of Equifax's U.S. consumer information solutions unit), Equifax Chairman and Chief Executive Richard F. Smith said in a news release. The unit provides consumer information products to businesses in the U.S., including online credit data and credit-decision technology services.
CSC Credit Services supplies information to banks, mortgage companies, retail establishments, the automotive industry, medical entities, utility companies and other users of financial and credit information.
CSC owns consumer credit files in 15 states, covering 20% of the U.S. population. CSC has been Equifax's largest credit affiliate since 1988. Equifax has been processing CSC's credit information and selling those files nationally since that time.
The deal, scheduled to close by yearend, is expected to be accretive to Equifax's adjusted earnings per share in 2013. It should generate $115 million to $125 million in net operating revenue for Equifax, Smith said.
The deal is part of Computer Sciences's efforts to "rebalance its portfolio of services," the Falls Church, Va., company said in a news release. The after-tax proceeds from the sale would be roughly $750 million to $800 million. Computer Sciences intends to use $300 million to $400 million to repurchase shares and contribute $300 million to $400 million to its pension plans. The remainder would apply to general corporate purposes.
The purchase price is subject to further adjustment after closing for the actual amount of working capital acquired by Equifax. However, Equifax does not expect any further changes will be material, it said.
Equifax would fund the purchase using debt and available cash. Equifax on Saturday entered into a new $350 million revolving credit facility with Bank of America (BAC) as administrative agent and a lender, JPMorgan Chase Bank, SunTrust Bank and Wells Fargo Bank to supplement an existing $500 million senior revolving credit facility. The new credit is available for general corporate purposes including acquisitions.
Equifax, based in Atlanta, was ranked No. 20 on Bank Technology News's
