Experian, a leader in global credit data and identity protection, announced that it had acquired ClearSale, a Brazilian cybersecurity company, for $350m.
Experian is making a major move with this acquisition, as they are looking to increase their presence in Brazil. The largest economy in Latin America is full of growth potential.
Experian already has a subsidiary in Brazil called Serasa that is a market leader for credit data. The acquisition of ClearSale will allow Experian to expand its services.
Brian Cassin (Experian CEO) stated that the integration of ClearSale’s advanced capabilities for transaction fraud detection would significantly enhance Experian’s current defenses against fraud involving account openings and takeovers.
Cassin said, “The ClearSale acquisition extends our ID&F Suite, adding transactional fraud detection to existing strengths.”
The move proves Experian’s commitment to providing comprehensive solutions for fraud prevention to Brazilian clients.
Deal Details
Experian is paying 10.56 Reais for each share of ClearSale. This represents a premium of 23.5% over ClearSale’s stock closing price on the 3rd October.
ClearSale stock soared 13% after the announcement.
It’s worth noting that ClearSale shares, since their debut on the public market in 2021 have suffered significant losses. They’ve lost approximately 70% of value.
ClearSale has an impressive client portfolio. It serves around 7,400 customers and reported net revenues of 504 millions reais ($91.72 million) in the last fiscal year.
This acquisition will not only enhance the services provided to customers of ClearSale as well Serasa, but also validate its excellent performance.
Their clients can expect more efficient and comprehensive solutions from the merger.
Experian indicated that the cost of acquisition could reach up to 1.905 billion reals.
The funding for this project will come from existing cash reserves as well as the issue of Brazilian Depository Recipients (BDRs).
Experian expects the acquisition to generate an additional revenue of around 490 millions reais, and boost core earnings by approximately 130 million reais during the first fiscal year following the acquisition.
Experian will need to obtain regulatory approvals from Brazilian authorities as the deal unfolds. It expects this to be finalized in the first quarter of 2025.
The acquisition of Experian reflects Experian’s focus on Brazil, a growing market. It also demonstrates its ambitions to expand globally and make technological advances in fraud prevention and identity services.
The post Experian buys Brazilian cybersecurity company ClearSale at $350 Million may change as new information becomes available.
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