Acquisition Positions Equifax as Major Force in Direct Marketing
Industry and Will Advance the Company's CRM Strategy, Enhance
Core Information Business and Open New Markets and New Growth
Opportunities
Equifax to Create a New Direct Marketing Unit to Manage One of
North America's Largest and Most Valuable Databases of Consumer
Lifestyle and Demographic Information
ATLANTA AND DETROIT, (Feb. 10, 2000) - Equifax (NYSE: EFX), a
worldwide leader in consumer information management, transaction
processing and customer relationship management solutions, and
privately held R.L. Polk & Co., a premier marketing information
services provider, today announced a definitive agreement for
Equifax to acquire Polk's Consumer Information Solutions (CIS)
Group. The innovative and industry-leading consumer lifestyle
and demographic data and direct marketing capabilities developed
by Polk's CIS Group complement Equifax's vast consumer credit
information, e-commerce, customer relationship management and
payment products and services, while positioning Equifax as a
major force in the direct marketing industry.
Under the recently signed definitive agreement, Equifax will
pay approximately $260 million to Polk for its CIS Group that
comprises four units: Direct Marketing, Data Information Services/Polk
Verity, Compusearch/Prospects Unlimited of Polk Canada and Polk
City Directory.
These businesses, with projected sales of $165 million for the
12 months ending March 31, 2000, represent a highly valuable source
of consumer information from more than 250 data sources on 180
million consumers (105 million households), including product
registration data, direct marketing, geodemographic and analytical
services. Equifax, advised by Bear, Stearns & Co. Inc., plans
to complete the transaction that is subject to certain terms and
closing conditions by April 30, 2000. Equifax expects the transaction
to have minimal dilution in fiscal year 2000 and to be accretive
in the first 12 months of operations and thereafter.
The benefits of the acquisition will be to:
- Add world-class consumer lifestyle and demographic databases
to complement Equifax?s industry-leading credit information,
analytic, decisioning, e-commerce and payment services;
- Utilize a team of 2,000 CIS employees, including some of
the most highly regarded direct marketing professionals across
the United States, Canada and Costa Rica.
- Accelerate the growth of Equifax?s North America Information
Services business through cross-selling solutions to a wide
range of industries;
- Advance Equifax?s customer relationship management strategy
that enables businesses to build more insightful relationships
with their customers by understanding their buying preferences;
- Continue the legacy and safeguards for responsible management
of sensitive consumer information, and
- Create value for consumers by enabling Equifax customers
to target consumer product offerings in line with consumer
preferences.
"This acquisition is a defining moment in the history
of our company, and an essential component to advancing our
strategies for growth in the future," said Tom Chapman,
Equifax chairman and chief executive officer. "The Polk
Consumer Information Solutions business has played a significant
role in providing highly valuable consumer marketing information
to a wide range of industries. This acquisition enables Equifax
to introduce new ways to market world-class lifestyle and demographic
data and gives us a leadership position in the direct marketing
industry."
"Equifax's outstanding reputation for managing large volumes
of sensitive consumer credit information is well known in the
direct marketing industry," said Stephen Polk, chairman and
chief executive officer of Polk. "This acquisition is a strategic
fit for Equifax that combines the capabilities and talent of Equifax
and CIS to provide enormous competitive advantage. It is a collective
win for both Polk and Equifax, their employees, customers and
shareholders."
After this acquisition, Equifax will not only manage the world's
most valuable and respected credit information, but also North
America's largest consumer and self-reported lifestyle and demographic
databases. The Equifax consumer credit database will remain separate
from the acquired lifestyle and demographic databases.
Equifax Gains Presence Among Premier Consumer Goods Manufacturers
Equifax will create a new unit that will provide the following
capabilities through the four businesses: Direct Marketing: List
processing, direct marketing campaigns and analytical services
using consumer demographic, lifestyle and specialty data, including
TotaList and The Lifestyle Selector (TLS); Data Information Services/Polk
Verity: data capture, database management and direct consumer
communications via its Survey of America, Buyer's Choice Surveys
and Polk Verity warranty card programs.
Compusearch/Prospects Unlimited, Canada?s leader in geodemographic
market analysis, providing Canadian micro-marketing data and database
management, including TotaList Canada and The Lifestyle Selector;
and Polk City Directory, a complete and enhanced database of businesses
and residences in more than 10,000 communities in North America,
providing cost-effective, targeted marketing solutions.
"CIS has a strong management team and a well-established
and formidable presence in the consumer goods manufacturing industry,
with 150 of the world's premier consumer goods manufacturers as
customers," said Lee Kennedy, Equifax president and chief
operating officer. "Our goal in this acquisition is to enable
Equifax to provide powerful direct marketing, consumer information
and customer relationship management solutions to enable our customers
to build knowledgeable relationships with their customers. We
have been impressed with the Polk CIS team and their unparalleled
success in the direct marketing industry. We expect the management
team and employees to remain and we look forward to welcoming
them to Equifax."
Kennedy also announced that John Healy, senior vice president
and general manager of CIS?s direct marketing unit, will lead
Equifax?s new unit as executive vice president and group executive,
reporting to Kennedy. Before joining Polk in 1997, Healy held
senior-level marketing positions at ADVO, Salient Technologies
and Pepsi USA. He earned a Master of Business Administration from
the University of Hartford and Bachelor of Science from Bryant
College.
Equifax, Polk Synonymous with Protecting Consumer Information
Equifax and Polk are recognized leaders in protecting the privacy
of consumer information. This acquisition ensures that the legacy
and the safeguards for all the acquired databases will continue
under Equifax.
"I have found Equifax and Polk to take privacy of consumer
information very seriously," said Alan Westin, professor emeritus
at Columbia University, leading privacy expert and consultant
to Equifax for more than a decade. "Both Equifax and Polk have
developed exemplary privacy principles and procedures for managing
consumer information. Together, I expect them to recognize the
delicate balance between consumer concerns about privacy and the
legitimate use of information to empower consumers and businesses
in the world's most dynamic economy."
About Polk
Polk provides multi-dimensional intelligence information solutions
to companies as a statistician and analytical consultant for the
motor vehicle industry; as a direct-marketing resource; as a supplier
of demographic and lifestyle data and database-marketing services;
as a publisher of city directories; and as a data enabler for
geographic information systems. Based in Southfield, Mich., Polk
is a privately held firm founded in 1870 that is expanding globally,
currently operating in the United States, Canada, United Kingdom,
France, Germany, Australia, Spain, Holland, China and Costa Rica.
About Equifax
Equifax, a worldwide leader in shaping global commerce, brings
buyers and sellers together through its information management,
transaction processing and customer relationship management businesses.
Atlanta-based Equifax (NYSE: EFX) serves the financial services,
retail, credit card, telecommunications/utilities, transportation,
information technology and healthcare industries and government.
Equifax adds knowledge, expertise, convenience and security to
provide value-added solutions and processes for its customers
wherever they do business, including the Internet and other networks.
Equifax employs more than 13,000 associates in 17 countries with
sales in almost 50 and has $1.8 billion in revenue.
Statements in this press release that relate to Equifax's future
plans, objectives, expectations, performance, events and the like
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the Securities Exchange
Act of 1934. Future events, risks and uncertainties, individually
or in the aggregate, could cause actual results to differ materially
from those expressed or implied in these statements. Those factors
could include changes in worldwide and U.S. economic conditions
that materially impact consumer spending and consumer debt, changes
in demand for the Company's products and services, risks associated
with the integration of acquisitions and other investments, and
other factors discussed in the "Forward-looking Information" section
in the management's discussion and analysis included at Part II,
Item 7 in the Company's annual report on Form 10-K for the year
ended December 31, 1998, and in the "Year 2000 Information" section
in the management's discussion and analysis included at Part I,
Item 2 in the Company's report on Form 10-Q for the third quarter
of 1999.
Acquisition at a Glance
Equifax Inc.
Headquarters: Atlanta, GA
Founded: 1899
Employees: 13,000
FY 1999 Revenue: $1.8 Billion
R.L. Polk & Co.
Headquarters: Southfield, Mich.
Founded: 1870
Employees: 4,000
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