Picture: ISTOCK
Picture: ISTOCK

London-listed information services company Experian will  buy SA credit bureau Compuscan, which is chaired by former FNB CEO Michael Jordaan, for R3.7bn.

“By combining forces with Compuscan, we will be better positioned to serve the people and businesses of this region and be an enabler of growth in consumer and business credit, identity management and financial inclusion,” Experian CEO Brian Cassin saidon Monday.

“This is an important transaction for our business in SA and will provide opportunities more broadly across the African continent,” Cassin said.

Founded in 1994, Compuscan provides credit information and decision analytics in SA and seven other markets in sub-Saharan Africa. The company also provides marketing services and recently launched a free credit report service for consumers.

Experian said Compuscan holds credit information on 26-million people and 200,000 businesses in SA, equating to about 56% of the population.

“The combined customer bases will also be highly complementary,” Experian said.

“Experian’s customers in SA are mainly large financial institutions and telecommunications operators, while Compuscan has an attractive position in the dynamic microlending space, as well as in the retail and insurance sectors.”

In SA, Experian generates revenues of about $40m (R574m).

For the six months to end-September, Experian reported total revenue of $2.4bn, a 7% increase from a year before.

“We have started the year well, with first-half organic revenue growth of 8% as we expand our data assets, introduce new global products and gain momentum in consumer services,” Cassin said in November.

The company’s shares have risen 15.9% in the year to date.