Equifax submitted an offer to acquire all of the second largest consumer credit bureau in Brazil, Boa Vista Serviços’ shares, for R$8 per share, according to a press release.
"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," said Mark W. Begor, CEO of Equifax. "We have a strong track record of reinvesting in strategic bolt-on M&A transactions to broaden and strengthen Equifax, having invested more than $3.5 billion in 12 acquisitions during the past 24 months.”
The share, valued at approximately $583 million, reflects an 89% premium over the closing price that was noted on Dec. 15. If the deal goes through, Boa Vista Serviços shareholders can choose to receive the payment in cash or a combination of cash and stocks.
Once the deal is finalized, Boa Vista Serviços will become a subsidiary of Equifax Brasil. The addition would also make way for capability expansion in the Brazilian market, which would give Boa Vista Serviços access to Equifax's global capabilities and technology. Boa Vista Serviços would also enter into a 15-year agreement with Associação Comercial de São Paulo to provide exclusive access to its data and to limit competition with the Boa Vista Serviços business.
The offer is supported by Associação Comercial de São Paulo, the largest shareholder of Boa Vista Serviços, who will retain to 20% of the combined company (Equifax Brasil) after the deal. Approval from the Boa Vista Serviços Board of Directors and from Boa Vista Serviços shareholders is still required.
“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,” Begor said. “We look forward to working with Boa Vista Serviços and its Board of Directors and executing a definitive merger agreement as quickly as possible."