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Equifax (EFX) to Gain From Data-Credito Buyout: Here's How

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Equifax Inc. (EFX - Free Report) is actively engaged in widening its international footprint as well as strengthening its capabilities with the help of strategic acquisitions. The company recently announced the acquisition of Data-Credito, one of the leading consumer credit reporting agencies in the Dominican Republic.

Founded in 1998, Data-Credito offers consumer credit bureau services, analytics and scores.

With Data-Credito, Equifax has now completed 11 acquisitions, marking a total investment of more than $3 billion, in the past 18 months.

Data-Credito becomes part of the International business unit at Equifax and will continue to be led by Alberto Adam, its corporate vice president.

How Will Equifax Benefit?

The acquisition of Data-Credito widens Equifax’s international presence. Data-Credito’s experienced local team and established value proposition provide a solid base to Equifax for boosting its business operations in decision making, risk analysis and fraud prevention platforms in the Dominican market. Notably, more than 4,000 organizations in Latin America are Data-Credito’s current customers.

The combination of Equifax and Data-Credito should enhance the credit scenario in the Dominican Republic market. The combination is expected to help financial institutions, lenders and service providers better understand their customers’ needs, create new mainstream financial service opportunities for unbanked or underbanked individuals, and make credit accessibility hassle-free for consumers and small-to-medium-sized enterprises.

Chris Jones, Equifax Latin America (LATAM) president, stated, "We have transformed the markets where Equifax operates by combining our unique data, analytics and technology and with the acquisition of Data-Credito we are bringing this expertise and comprehensive solution set to the Dominican Republic. This is a bridge to the Caribbean that will allow Equifax to connect and stay close to strategic regional clients and to better serve our consumers."

With Equifax accelerating its push in the credit market with the acquisition of Data-Credito, it may face competition from the likes of S&P Global Inc. (SPGI - Free Report) , FactSet Research Systems Inc. (FDS - Free Report) and TransUnion (TRU - Free Report) .

S&P Global has a trailing four-quarter earnings surprise of 7.7%, on average.

S&P Global has a long-term earnings growth of 12%.

FactSet has a trailing four-quarter earnings surprise of 3.3%, on average.

FactSet has a long-term earnings growth of 8.4%.

TransUnion has a trailing four-quarter earnings surprise of 4.2%, on average.

TransUnion has a long-term earnings growth of 23.1%.

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