Experian, the global information services company, is pleased to announce that it has acquired substantially all the assets of Mighty Net, Inc (Mighty Net), a provider of online credit monitoring services to consumers. The purchase price is US$207.5m which will be funded from Experian’s existing cash resources.
Founded in 1996, Mighty Net provides online services to US consumers interested in managing their credit behaviour. Mighty Net’s key products include bureau reports, bureau scores, credit score tracking and credit file monitoring services, which are provided directly to consumers on a subscription basis. As at 30 June 2010, Mighty Net had approximately 680,000 subscribers in the US. Mighty Net’s products are marketed online through its CreditReport.com, CreditScore.com and MyCreditScore.com websites.
Experian is the US leader in providing credit monitoring services directly to consumers through its Consumer Direct business. The acquisition of Mighty Net brings attractive consumer brands to Experian and further consolidates Experian’s position in this market:
In the year to 31 December 2009, Mighty Net generated revenue of US$115m and EBIT of US$28m, with expected revenue growth of 10% in the year to 31 December 2010. Certain channels and lines of business at Mighty Net will be discontinued post acquisition, which will result in adjustment to revenue and EBIT going forward. Pro forma revenue from continuing activities is expected to be c. US$105m in the year to 31 December 2010.
The structure of the transaction provides Experian with an opportunity to realise a cash tax benefit from the amortisation of the intangible goodwill generated on acquisition. Experian estimates that the net present value of this tax benefit will be approximately US$45-50m, equivalent to a net cash benefit of c. US$5m per annum for the next 15 years.
Mighty Net is 100% owned by its founders and the assets acquired will form part of Experian’s North America Interactive division.
|Nadia Ridout-Jamieson||Director of Investor Relations||+44 (0)20 3042 4215|
|James Russell||Public Relations Director|
|Rollo Head||+44 (0)20 7251 3801|
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company 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 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit www.experianplc.com.