Benzinga | Aug 10, 2021 06:02AM EDT

Equifax Announces Definitive Agreement to Acquire Appriss Insights For $1.85B

Equifax(r) (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.