Experian, a global information services company, has announced its agreement to acquire illion, a prominent consumer and commercial credit bureau in Australia and New Zealand (A/NZ). The acquisition, valued at up to A$820m, is expected to enhance Experian's competitive position in the A/NZ market and provide a more comprehensive range of services to clients in the region.
Established in 1986, illion offers consumer credit reporting, commercial credit reporting, and identity and verification solutions in Australia and New Zealand. Experian's CEO, Brian Cassin, highlighted the strategic rationale behind the acquisition, emphasizing the company's commitment to delivering exceptional value and more choice to clients in A/NZ. This move aligns with Experian's strategy to focus on markets where it can operate at scale and drive innovation-led growth.
The acquisition of illion is anticipated to enable Experian to capitalize on the evolving Australian lending market, which has seen regulatory reforms introducing comprehensive data and open data services. This has expanded the market for analytical tools and data-driven services, presenting an opportunity for Experian to offer enhanced choice and accelerate the adoption of digital services in A/NZ.
Financially, the acquisition is valued at up to A$820m and is expected to add revenues of approximately A$175m and Benchmark EBITDA of around A$65m in the first full year of ownership. The transaction is subject to regulatory review by the competition authority in Australia, with an anticipated conclusion in the second half of calendar year 2024.
Experian's acquisition of illion is poised to strengthen its position in A/NZ by providing a more complete service for clients, adding depth in consumer and commercial credit bureau services, as well as capabilities in identity management solutions. This move is expected to benefit businesses in A/NZ by leveraging Experian's global platforms to streamline credit granting processes, enhance digital experiences, reduce fraudulent exposure, and improve efficiency in banking and other sectors.
Experian's acquisition of illion underscores its commitment to delivering innovative solutions and expanding its presence in the A/NZ market, ultimately aiming to provide more comprehensive and competitive services to clients in the region.