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Equifax (EFX) Completes ID Watchdog Acquisition for $63M

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Equifax Inc. (EFX - Free Report) recently completed the acquisition of ID Watchdog in an all-cash deal. The company had entered into a definitive agreement to acquire ID Watchdog on Jun 16, 2017.

Per the agreement, Equifax will pay approximately $63 million in cash, which translates to nearly 40 cents per share, to acquire all outstanding shares of ID Watchdog. The buyout is aimed to provide a boost to Equifax’s capabilities to serve customers better.

Founded in 2005, ID Watchdog is one of the leading providers of identity theft protection and resolution services to the Employee Benefits marketplace. The acquisition is anticipated to further strengthen Equifax’s identity theft protection services and fortify its presence in the employee benefits space.

According to Dann Adams, President of Global Consumer Solutions at Equifax, “"We are excited to have ID Watchdog's industry leading products become an important part of our organization." Adams further added, "Merging our Identity solutions and industry relationships will significantly increase the access, range, and depth of our employee benefits solutions."

Equifax is the world’s largest data management company which organizes and assimilates data related to more than 820 million customers, and 91 million businesses globally.

The company has made strategic acquisitions to supplement its core business. In 2014, the company acquired TDX Group and Forseva, while it closed the Veda Group Limited buyout in first-quarter 2016.

We believe that management’s efforts, such as strategic initiatives for product innovation, expansion of data assets through acquisitions and continuous share gains in North America, should act as tailwinds. Moreover, the company’s strong correlation with the consumer and financial markets, as well as exposure in the U.S. and Europe are likely to propel growth, moving ahead.

However, we foresee the company’s investments in new initiatives to weigh on its upcoming quarterly earnings. Additionally, uncertainty surrounding IT spending and the strengthening U.S. dollar remain concerns.

Moreover, increasing competition from the likes of Fiserv , Automatic Data Processing Inc (ADP - Free Report) and Total System Services are other factors likely to affect earnings in the near term.

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