Equifax Reaches Binding Agreement To Buy Veda Group For US$1.8 Bln

(RTTNews) - Equifax Inc. (EFX) reached a binding agreement to acquire all outstanding shares of the common stock of Veda Group Limited (VED.AX) for A$2.825 per share in cash, the two companies announced.

The cash payment of A$2.825 represents an implied market capitalisation of A$2.506 billion and an implied enterprise value of A$2.617 billion for the year ended 30 June 2015, on a fully diluted basis.

The offer price of A$2.825 cash per share represents a premium of 41.6% premium over the previous closing price of Veda shares of A$1.995 on 17 September 2015, the last trading day prior to the announcement of Equifax's Original Expression of Interest.

The Directors of Veda unanimously recommend that Veda shareholders vote in favour of the Scheme. They also intend to vote Veda shares in their control in favour of the Scheme, in the absence of a superior proposal and subject to the Independent Expert concluding that the Scheme is fair and reasonable and in the best interests of Veda shareholder.

Equifax noted that it will purchase the Veda shares using proceeds available from senior credit facilities provided by a bank syndicate. Should the Agreement proceed to completion, the proposed transaction will be earnings per share accretive for Equifax.

Veda said its shareholders will be given the opportunity to vote on the Scheme at a Scheme Meeting expected to be held in February 2016. Subject to the conditions of the Scheme being satisfied, the Scheme is expected to be implemented by the end of February 2016. These dates are indicative and subject to change.

Veda is a provider of consumer and commercial credit reporting in Australia and New Zealand. The company also operates through joint ventures in several other Asia-Pacific markets.

Equifax noted that the implementation of this binding agreement is subject to customary closing conditions, as well as shareholder and regulatory approvals in Australia. The acquisition is anticipated to close by the end of the first quarter of 2016.