Experian, a global information services company, has announced its agreement to acquire illion, a leading consumer and commercial credit bureau in Australia and New Zealand (A/NZ). This strategic move is aimed at enhancing Experian's competitive position in the A/NZ market and reinforcing its commitment to delivering exceptional value and choice to clients in the region.
Established in 1986, illion provides consumer credit reporting, commercial credit reporting, and identity and verification solutions in Australia and New Zealand. Experian's strategy in EMEA and Asia Pacific focuses on operating at scale and delivering innovation-led growth, and the acquisition of illion aligns with this approach.
The Australian lending market is undergoing regulatory reforms, introducing comprehensive data and open data services, which has increased the demand for analytical tools and data-driven services. The acquisition of illion will enable Experian to capitalize on this opportunity, offering enhanced choice in A/NZ and providing a competitive alternative to help businesses accelerate the adoption of digital services.
The acquisition, valued at up to A$820m (c.US$532m*), is expected to add revenues of approximately A$175m and Benchmark EBITDA of around A$65m in the first full year of ownership. This compares to Experian's revenues in A/NZ, which are expected to be around A$115m in FY24. The transaction is subject to regulatory review by the competition authority in Australia, anticipated to conclude in the second half of calendar year 2024.
Experian's CEO, Brian Cassin, expressed enthusiasm about the acquisition, stating, "This marks a pivotal step in our longstanding commitment to the region and reinforces our dedication to delivering exceptional value and more choice to clients in A/NZ." The acquisition of illion is expected to complement Experian's existing strengths in A/NZ, presenting a more complete service for clients and enabling the introduction of more innovation in Australia through capabilities such as the Experian Ascend unified platform.
In conclusion, the acquisition of illion by Experian represents a significant strategic move to strengthen its presence in the A/NZ market, capitalize on the evolving regulatory landscape, and provide enhanced choice and value to clients in the region.