Ireland-based intelligence provider and credit reporting agency Experian PLC agreed to acquire U.K.-based financial technology firm Clear Score Technology Ltd. for £275 million.
The transaction also provides for a potential additional payment contingent on future financial performance.
Experian said the deal, which will be funded from its existing committed bank facilities, is expected to be accretive to the company's benchmark earnings in the first full fiscal year of ownership. Earnings before interest and tax are expected to be neutral in 2018 and rise to a roughly $20 million contribution in 2019, before integration costs.
Experian added that it expects to record one-off expenses of $20 million to integrate the business and realize the planned synergies, which are expected to amount to roughly $25 million per year after integration with the Experian business.
The transaction is expected to close later in 2018, subject to regulatory approval by the U.K. Competition and Markets Authority and Financial Conduct Authority, in addition to other customary closing conditions.
ClearScore provides free access to credit reports and scores and offers personal financial products, generating revenue from referral fees paid by lenders and other service providers on its site. Following completion of the deal, the company will be included within Experian's U.K. consumer services division.
