Equifax Announces Definitive Agreement to Acquire Appriss Insights

Rhea-AI Summary

Equifax has signed a definitive agreement to acquire Appriss Insights for $1.825 billion, bringing significant data assets to enhance its Workforce Solutions verification capabilities. The acquisition is expected to generate about $150 million in revenue for Appriss Insights in 2021, marking a 30% increase from the previous year. Additionally, Equifax will benefit from a $360 million tax benefit at the time of purchase. This strategic move targets expanding into the $5 billion U.S. talent acquisition and $2 billion U.S. government social services markets, enabling better risk management and fraud prevention.

Positive

• Acquisition expected to generate approximately $150 million in revenue in 2021, 30% increase year-over-year.
• Equifax will realize a tax benefit with a net present value of about $360 million upon acquisition.
• Expansion into $5 billion U.S. talent acquisition market and $2 billion U.S. government social services delivery market.

Negative

• None.

ATLANTA, Aug. 10, 2021 /PRNewswire/ -- Equifax® (NYSE: EFX) a global data, analytics and technology company has signed a definitive agreement to acquire Appriss Insights, a trusted and comprehensive source of risk and criminal justice intelligence, for $1.825 billion. In conjunction with the acquisition, Equifax will receive a tax benefit with a net present value at time of purchase of approximately $360 million. Appriss Insights, a portfolio company of Clearlake Capital Group, L.P. (together with its affiliates, "Clearlake") and Insight Partners, provides data used in public and workplace safety, law enforcement, fraud detection and prevention, and healthcare credentialing. This acquisition will expand the breadth of differentiated data sources "Only Equifax" can provide, expanding the company's market-leading and fast growing Workforce Solutions verification capabilities, enhancing identity and fraud prevention offerings, advancing the strategy for a comprehensive Workforce Solutions data hub, and helping public and private organizations tap into timely, decision-critical data that helps employers reduce workforce risk and communities improve delivery of government entitlement programs. Appriss Insights is expected to generate approximately $150 million of revenue in 2021, up 30% over last year, and the transaction is expected to be strongly accretive to Equifax Adjusted EPS in 2022. An investor call and webcast on the agreement will be held on August 10, 2021 at 8:30 a.m. Eastern Time (ET).

"The acquisition of Appriss Insights' industry-leading data platforms will further position Equifax as the resource of choice for public and private sector decision intelligence," said Mark W. Begor, CEO of Equifax. "Our strong performance and balance sheet allow Equifax to reinvest our cash flow in this accretive and strategic acquisition that will strengthen our largest, fastest-growing business unit - Workforce Solutions - for additional growth by building on our differentiated verifications data and expertise while further diversifying Equifax. We are extending the scope of our verification capabilities beyond income and employment with Appriss Insights' unique data assets which feature industry-leading automation, coverage and accuracy."

Appriss Insights will expand Equifax relationships with employers, background screeners, and state and federal government agencies, extending Equifax reach into the $5 billion U.S. talent acquisition market and $2 billion U.S. government social services delivery market - areas seeing increasing demand for criminal background checks and continuous monitoring services.

Appriss Insights was founded in 1994 with the creation of the VINE® network, a proprietary victim notification network that empowers victims with timely and reliable information regarding incarcerated persons. VINE uses Appriss' robust incarceration data network to deliver more than 25 million notifications every year and is utilized by 47 states and the territory of Guam to protect crime victims. Appriss Insights maintains the nation's most comprehensive and up-to-date incarceration data network with more than 170 million historical booking records accounting for over 90 percent of near real-time incarcerations in the United States. The company also has built a proprietary national criminal justice database, NCIS™, the industry's most extensive and flexible national criminal file. In addition to helping keep crime victims safe, these differentiated data assets are used in background checks within the hiring process to help identify and mitigate people-based risk. They also are used by law enforcement and government agencies to support active investigations and aid in the efficient delivery of government entitlement programs, helping to get much-needed benefits to those who are eligible while mitigating fraud and reducing waste.

"Deeper data insights drive better decisions, whether you are an employer, background screener, healthcare provider, or social service agency," said Rudy Ploder, president of Equifax Workforce Solutions. "Together with Appriss Insights and its employees, Equifax Workforce Solutions will accelerate the development of new services leveraging our market leading The Work Number® database of income and employment information alongside unique data assets from Appriss Insights. With this acquisition, we are advancing our plan to build out a comprehensive data hub for verifications and monitoring, helping fuel better informed decisions for our public and private sector customers." 

"More than 20 federal agencies as well as state agencies in all 50 states trust Appriss Insights' cloud-based services, as do thousands of employers and background screeners," said Brian Matthews, president of Appriss Insights. "The combination of Appriss Insights and Equifax presents exciting opportunities to grow these partner relationships. We are energized to join forces with Equifax to help more individuals, agencies and organizations expand their verification and monitoring services with continuous, real-time access to reliable data."

Appriss Insights' Artificial Intelligence (AI)-driven solutions complement Equifax verification products by providing real-time notifications, context-sensitive risk assessments, and actionable insights. Both Equifax and Appriss Insights leverage cloud-native infrastructures that drive faster delivery of solutions to customers and enable them to more quickly realize the benefits of new services and technologies.

Additional Appriss Insights offerings that will enter Equifax into new markets and expand the company's service and support for government and commercial organizations include:

• The National Precursor Log Exchange (NPLEx), a real-time electronic logging and compliance system that tracks sales of over-the-counter (OTC) cold and allergy medications containing pseudoephedrine (PSE), precursors to the illegal drug, methamphetamine.
• The ProviderSafe™ set of database solutions and services designed to streamline healthcare credentialing and compliance with faster, more comprehensive screening services for the healthcare industry.

Appriss Insights will continue to be led by Brian Matthews and will be based in Louisville, Kentucky. Its employees will join the Equifax Workforce Solutions business. Appriss Health and Appriss Retail will remain part of Appriss Inc. and are not a part of this transaction. The transaction is subject to customary closing conditions and regulatory review and is expected to close in the second half of 2021.

J.P. Morgan acted as the sole financial advisor and King & Spalding LLP served as the legal advisor to Equifax.

Conference Call and Audio Webcast
Equifax will host a conference call at 8:30 am ET on August 10 in which senior management will discuss the Appriss acquisition. Related presentation materials will be published on investor.equifax.com on August 10 at 6:30 am ET.

Investor Conference Call:
US/Canada: (877) 559-1190
International: (201) 389-0916

Please dial the appropriate number 5-10 minutes prior to the call to complete registration. Name and affiliation/company are required to join the call.

Webcast:
To view the webcast and slide presentation, please click the link and enter your information to be connected. The link becomes active 15 minutes prior to the scheduled start time.

FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements and forward-looking information. All statements that address operating performance and events or developments that we expect or anticipate will occur in the future, including statements relating to our future financial and operating results, our strategy, our ability to successfully consummate the proposed transaction, the expected financial and operational benefits, synergies and growth from the proposed transaction, our ability to integrate Appriss Insights and its products, services, technologies, IT systems and personnel into our operations, the impact of COVID-19 and changes in U.S. and worldwide economic conditions, and similar statements about our outlook and our business plans are forward-looking statements. We believe these forward-looking statements are reasonable as and when made. However, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in our 2020 Form 10-K and subsequent SEC filings. As a result of such risks and uncertainties, we urge you not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by more than 12,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com

FOR MORE INFORMATION
Kate Walker for Equifax
mediainquiries@equifax.com

 

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SOURCE Equifax Inc.

FAQ

What is the purpose of Equifax's acquisition of Appriss Insights?

Equifax aims to enhance its Workforce Solutions verification capabilities and expand its data offerings in risk management and fraud prevention.

How much did Equifax pay to acquire Appriss Insights?

Equifax acquired Appriss Insights for $1.825 billion.

When is the acquisition of Appriss Insights expected to close?

The acquisition is expected to close in the second half of 2021, pending customary closing conditions and regulatory review.

What financial benefits will Equifax gain from the acquisition?

Equifax expects the acquisition to be strongly accretive to its Adjusted EPS in 2022 and to receive a tax benefit valued at approximately $360 million.

What markets will Equifax enter with the acquisition of Appriss Insights?

Equifax will expand into the $5 billion U.S. talent acquisition market and the $2 billion U.S. government social services delivery market.