Agreement to sell PriceGrabber
news release
Agreement to divest of PriceGrabber and North America online lead generation activities
10 May 2012 - Experian, the global information services company, announces that it has signed an agreement to sell PriceGrabber, its price comparison shopping business and North America online lead generation activities, which operate under the brands Classes USA and LowerMyBills. The acquirer is Ybrant Digital Limited, a leading digital marketing services business based in Hyderabad, India. Both businesses have been non-core to Experian for several years, and the agreed divestment is consistent with Experian's strategic focus to extend its global lead in credit information and analytics, digital marketing services and direct-to-consumer services.
Experian and Ybrant are committed to completing this transaction as quickly as possible, subject to various conditions and events by Ybrant. While there can be no clear certainty until all conditions are met, it is expected to close within the first half of the fiscal year. A further announcement will be made in due course.
The agreed consideration is US$175m, consisting of US$100m cash at closing and a US$75m loan note. On closing, cash proceeds will be used to repay bank borrowings. In addition, Experian expects to realise cash tax relief of approximately US$120m in respect of the transaction over the next two years. For the year ended 31 March 2012, revenues for the businesses subject to the divestment agreement were US$283m and EBIT was US$20m.
In view of Experian's intention to sell, both PriceGrabber and the North America lead generation activities have been treated as discontinued operations in the Group's financial statements for the year ended 31 March 2012, and as such excluded from organic revenue growth and Benchmark profit before tax and Benchmark EPS.
Going forward, the Interactive division will consist of Experian's Consumer Direct business only, and will be renamed Consumer Services, which more appropriately reflects the continuing operations of that business segment The new name will be adopted in financial reporting for the year ending 31 March 2013.
Contact
Experian
Nadia Ridout-Jamieson Director of Investor Relations +44 (0)20 3042 4215
James Russell Communications Director, UK&I and EMEA
RLM Finsbury
Rollo Head +44 (0)20 7251 3801
Don Hunter
About Ybrant Digital
Ybrant Digital Limited is a provider of digital marketing solutions to businesses, agencies and online publishers worldwide. The company is headquartered in Hyderabad, India with offices in over 20 countries and over 450 employees globally. Its principal business lines include search and email marketing, lead generation, co-registration and affiliate marketing. Ybrant is led by founder and CEO Suresh Reddy, who also previously founded USA Greetings. In August 2011, Ybrant announced a reverse merger with publicly listed LGS Global Limited, a technology outsourcing and software services company based in India. At the completion of this merger transaction, the combined entity will be named Ybrant Digital Limited with a public listing on the Bombay Stock Exchange.
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
This information is provided by RNS
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