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News

Experian acquires ClearSale in a USD 350 million deal

Monday 7 October 2024 11:33 CET | News

Experian, a company specialising in consumer and business credit reporting, has proceeded with the acquisition of ClearSale in a USD 350 million deal that plans to scale its footprint in Brazil. 

By pushing forward with the strategic move of acquiring ClearSale, which is a Brazil-based cybersecurity company, Experian intends to both optimise its identity and fraud prevention services while also expanding its footprint in the region. The decision can be attributed to Brazil’s position in Latin America, with the country being the largest economy in the region and presenting several growth opportunities. Currently operating Serasa, one of its subsidiaries focusing on credit information, in Brazil, the company sees the acquisition of ClearSale as a complementary opportunity to scale its service offering.

Experian buys ClearSale to scale its operations in Brazil

When commenting on the announcement, representatives from Experian underlined that, by buying ClearSale, their company is set to extend its ID&F suite, including transaction fraud detection into its existing capabilities in account opening and account takeover fraud prevention. In addition, Experian views Brazil as a high-growth market, positioning it as a strategic expansion priority globally. Also, the current move underlines the company’s commitment to providing comprehensive fraud management solutions to its customers across the Brazilian market.

More details on Experian’s deal with ClearSale

As part of the agreement, Experian is set to pay 10.56 reais per share for ClearSale, which represents a 23.5% premium over the firm’s closing stock price on 3 October 2024. Shortly after Experian’s move was announced, ClearSale’s stock substantially scaled, reaching nearly 13% in early trading. Currently, the company holds an active user base of approximately 7,400 clients and accumulated USD 91.72 million in net revenues in 2023, as per its data. According to ClearSale’s officials, the deal with Experian underlines their company’s capabilities and is set to benefit both its and Serasa’s clients by merging their knowledge and delivering more complete and efficient solutions.

Furthermore, the deal, which is expected to cost up to USD 350 million, is set to be funded from a combination of existing cash resources and the issuance of Brazilian Depositor Receipt. Additionally, the agreement is still subject to regulatory approval from the Brazilian authorities, with Experian projecting it to be granted in the first half of 2025.

Source: Link


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Keywords: acquisition, expansion, fraud management, identity verification, fraud prevention
Categories: Fraud & Financial Crime
Companies: Clearsale, Experian
Countries: Brazil
This article is part of category

Fraud & Financial Crime

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Clearsale

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Experian

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