Join        Login             Stock Quote

CSC (CSC) To Sell Credit Services Unit To Equifax (EFX) For $1B

 December 03, 2012 08:20 AM

(By Balachander) Computer Sciences Corp. (NYSE: CSC) has agreed to sell its credit services business for $1 billion in cash to Equifax Inc. (NYSE: EFX) as part of its strategy to rebalance its portfolio of services.

CSC, which offers technology-enabled business services, expects after-tax proceeds from the sale of the unit to be roughly $750 to $800 million.

The company's credit services unit is the largest independent U.S. consumer credit reporting agency and has been an Equifax largest credit affiliate since 1988. CSC owns consumer credit files in 15 U.S. states covering around 20 percent of the U.S. population.

[Related -Computer Sciences Corporation (NYSE:CSC): CSC May Miss FY2014 Revenue Target]

"This transaction advances CSC's turnaround by reshaping our portfolio and enabling the company to focus on next-generation technology solutions and service," commented CSC CEO Mike Lawrie.

Equifax, a provider of information services, expects to realize tax benefits from a step-up in the tax basis of the acquired assets having an estimated net present value of around $200 million over a 15-year amortization period.

Equifax CEO Richard Smith said he expects the deal to be "solidly" accretive to Equifax's adjusted earnings per share in 2013. He also expects incremental net operating revenue to Equifax in the range of $115 million to $125 million and EBITDA of $105 million to $110 million as a result of the acquisition.

[Related -5 Key Takeaways From International Business Machines Corp. (NYSE:IBM)Troubles]

The deal is expected to be completed by the end of the calendar year.

CSC shares closed at $38.06 on Friday, and EFX shares ended at $51.24.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageBogle Says Indexing Destined To Win The Battle Of The Quants

Vanguard founder John Bogle gave a powerful speech last month at the Q Group’s Spring Seminar that lays out read on...

article imageVMAX and VMIN Poised to Be Most Important VIX ETP Launch in Years

REX Shares is launching two new VIX exchange-traded products on Tuesday in what is likely to be the most read on...

article imageThe April 29 Gold Triangle Breakout Update

If you’re just watching stocks, you may be missing this powerful Triangle Breakout surge in read on...

article imageSell In May, But It Is A Presidential Election Year

With May just around the corner, articles covering the "Sell in May' phenomenon are not in short supply and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.