TransUnion has agreed to acquire an additional 68% stake in Trans Union de Mexico, the consumer credit business of Mexican credit bureau Buró de Crédito, in an all-cash deal worth $560m.
Under the terms of the definitive agreement, the US-based consumer credit reporting agency will increase its ownership in Trans Union de Mexico from 26% to approximately 94%, excluding Buró de Crédito’s commercial credit operations.
The acquisition, valued at an enterprise total of $818m, supports TransUnion to expand its footprint in Mexico.
Buró de Crédito manages Mexico’s credit database for individuals and businesses.
The firm consists of two credit bureaus, namely Trans Union de México, which focuses on individuals, and Dun & Bradstreet, which caters to individuals with business activities as well as corporations.
TransUnion plans to strengthen Trans Union de Mexico’s operations by leveraging its global operating model. It also intends to introduce innovative solutions aimed at promoting financial inclusion and expanding access to credit.
In addition, TransUnion plans to increase its workforce in Mexico over the coming years to support its growth ambitions.
The transaction is projected to generate approximately $145m in revenue and $70m in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2024.
Based on current foreign exchange and financing conditions, the deal is expected to be accretive to TransUnion’s adjusted diluted earnings per share within the first year of majority ownership.
TransUnion president and CEO Chris Cartwright said: “Credit bureaus are a catalyst for financial inclusion, and we are excited for the opportunity to bring the benefits of our state-of-the art technology, innovative solutions and industry expertise to Mexican consumers and businesses.
“We also look forward to supporting the country’s digital transformation objectives to empower consumers with increased economic opportunity.”
TransUnion offers expertise in areas such as fraud prevention, risk management, and advanced analytics.
The consumer credit reporting agency will fund the acquisition through a combination of debt and cash on hand.
Subject to regulatory approvals and customary conditions, the transaction is anticipated to be completed by the end of this year.
