Residual FARES Stake Exercise

RNS Number : 6773K

Experian plc

23 April 2010

 



news release

The First American Corporation exercises option over residual FARES stake

The First American Corporation has notified Experian that it has exercised its option over Experian's residual interest in FARES.  The gross cash consideration payable to Experian from the exercise of the option is approximately US$314m and under the terms of the agreement the proceeds are payable by 31 December 2010.

Following the completion of this transaction, Experian will have fully divested its 20% interest in FARES. Total gross proceeds will be approximately US$432m consisting of proceeds from the disposal of Experian's interest in FARES to First American (US$314m), divesture of shares held in First American (formerly First Advantage shares, US$70m) and proceeds from the prior disposal of interest in FARES' plant management and image document businesses (US$48m). After taxes and other expenses, Experian expects a net cash inflow of approximately US$370m. Proceeds received to date have been used to repay bank borrowings. The Experian plc Board will make a determination about the use of future proceeds at the appropriate time.

For the year ended 31 March 2009, the EBIT contribution from FARES was US$48m.  FARES will be treated as a discontinued operation in the statutory financial statements for the year ended 31 March 2011, and as such will be excluded from Benchmark profit before tax and Benchmark EPS in that year.

Notes to editors

1.   In 1997, Experian formed a joint venture with The First American Corporation called First American Real Estate Solutions, or FARES, into which it contributed its US property database businesses. FARES provides a broad range of property data, analytical tools and related services to the real estate and financial services industries.

2.   The value of gross assets held by Experian related to FARES was US$313m at 31 March 2009.

Contact

Experian

Nadia Ridout-Jamieson          Director of Investor Relations          [phone]

James Russell                        Public Relations Director

Finsbury

Rollo Head                                                                                       [phone]

Experian announcements are available on www.experianplc.com

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2009 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil. 

For more information, visit http://www.experianplc.com.

###

 

END

 

 

MSCUOVVRRUASURR