Dun & Bradstreet To Partner Latin America And Benelux; Updates Guidance

(RTTNews) - Dun & Bradstreet (DNB) announced it is shifting businesses based in the Latin America and Benelux regions to a Worldwide Network partner model by entering into definitive agreements to divest the domestic operations in these regions. The aggregate value of both deals, inclusive of upfront consideration of $39 million and ongoing fees, is in excess of $200 million. The company expects the transactions to be accretive to operating income and EPS in 2016 and 2017. Upon closing the transactions, Dun & Bradstreet expects to record a non-cash GAAP loss of approximately $88 million, driven entirely by accumulated currency translation. Organic revenue growth is not impacted by the transactions.

Dun & Bradstreet announced, for fiscal 2016, the company expects: as adjusted organic revenue growth unchanged at 1.5% to 3.5%, before the effect of foreign exchange; as adjusted total revenue growth unchanged at 4% to 6%, before the effect of foreign exchange; as adjusted operating income of 1% to 5%, increased from previous guidance of flat to 4%; and as adjusted EPS of between a decline of 2% to an increase of 3%, updated from previous guidance of a decline of 3% to an increase of 2%.

For the second quarter ended June 30, 2016, GAAP revenue was up 6% year over year, after the effect of foreign exchange. As adjusted revenue was up 5% year over year, both before and after the effect of foreign exchange, and organic revenue up 2% year over year.