Leading credit information and database provider Equifax Inc. (EFX) recently acquired U.K.-based Workload Financial Business Consultants Limited. Financial terms of the deal were not disclosed.
Founded in 1988, Workload Financial provides market intelligence to life, pension, investment and mortgage industries, through its flagship product, Touchstone. Leveraging its wealth and asset data, including information on Industry Standard Architecture and International Fiscal Association, bonds, unit trusts, pensions and mortgages, Workload’s clients gain a detailed understanding of market conditions, which helps them in formulating sales and marketing strategies to grow their businesses.
To tap opportunities in competitive markets (such as financial services, telecommunications and retail), companies are seeking market advantage through effective customer management. The acquisition of Workload will enable Equifax to provide the broadest possible insight into consumer behavior, financial status, capabilities of customers and market opportunities. Moreover, it will further solidify Equifax’ presence in the U.K.
With the sale of its direct marketing division (refer to this blog: Equifax Wraps Up DMS’ Sell-Off), the company is now refocusing on growth in its core business through new product launches and overseas expansion. The acquisition of Workload Financial marks another step toward Equifax’ global strategy to continue developing its market-leading wealth intelligence business. In 2009, Equifax had acquired US-based wealth and asset data provider, IXI Corp.
Equifax posted a solid fourth quarter, beating the Zacks Consensus Estimates on both top and bottom lines. We believe that the company is poised to benefit from its leading position in important markets, capitalize on heightened consumer concern regarding identity theft and profit from strengthening international markets.
However, given the company’s strong correlation to consumer and financial markets, as well as its US exposure, improvement in results will at best be gradual, in tandem with the country’s economic recovery. Competitive pressure from Automated Data Processing Inc. (ADP) is a concern.
Currently, Equifax has a Zacks #4 Rank implying a short-term Sell rating.
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