Through the acquisition, Equifax hopes to expand its capabilities in the ‘large and fast-growing’ market in Brazil.
Equifax has offered to pay a price of R$8 per share, a premium of 89% premium over the closing price on 15 December 2022.
Specifically, under the terms of the proposal, Boa Vista Serviços shareholders will have the option to receive R$8 per share in cash or a combination of cash and Brazilian Depositary Receipts (BDRs) representing shares of Equifax common stock or a combination of shares of Equifax Brasil common stock and cash/Equifax BDRs.
Equifax CEO Mark Begor said: “Equifax has been an investor in Boa Vista Serviços since 2011, and with this acquisition, we would bring powerful new insights to Brazilian lenders and service providers that would help them better understand their customers and promote greater financial inclusion.
“We have a strong track record of reinvesting in strategic bolt-on M&A transactions to broaden and strengthen Equifax, having invested more than $3.5bn in 12 acquisitions during the past 24 months.
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“This transaction aligns with our EFX2025 strategic priorities and would mark an exciting new global chapter for both Equifax and Boa Vista Serviços customers and employees while providing Boa Vista Serviços shareholders immediate liquidity with a substantial 89% premium.”
Currently, Equifax and Associação Comercial de São Paulo (ACSP) collectively own more than 40% voting rights of Boa Vista Serviços.
ACSP, which provides data to Boa Vista Serviços and is also its largest shareholder, is expected to own up to 20% of the combined entity (Equifax Brasil).