Equifax Inc. (EFX - Analyst Report), in an attempt to tighten its grip on the fast growing identity protection market, has recently acquired TrustedID. It is going to be part of Equifax’s Personal Solution group, post acquisition.
Although financial terms of the agreement were not disclosed, industry sources close to the company confirm that the deal is worth approximately $30.0 million to be paid in cash.
TrustedID was initially built with $20 million secured as funding from investors, since the time it was first founded in 2004. The initial investors of the company included Draper Fisher Jurvetson and Opus Capital, along with an angel investor, Brad Garlinghouse. Oflate, the company has been making losses as a result of its efforts to expand its offerings.
TrustedID deals with identity protection solutions andprotects privacy and reputation on social media services. Therefore, there is potential in the market.
Strategic acquisitions andproduct innovation are helping Equifax broaden its dataand identity protectionassets. This in turn is resulting inshare gains in North America, as well as other internationalmarkets.
Given the company’s strong correlation with the consumer and financial markets, as well as its U.S. and European exposure, we see a gradual improvement in results. Competition from Fiserv Inc. (FISV - Analyst Report) and Green Dot CP - A (GDOT - Snapshot Report) is also a concern.
Currently, Equifax has a Zacks Rank #3 (Hold). Moreover, investors can consinsider investing in stocks Official Payment Holdings Inc. having a Zacks Rank#1 (Strong Buy).