Shares in Experian (LON:EXPN) have been little changed in London in today’s session, as the company announced that it had inked a deal to buy South African peer Compuscan. The news comes after the FTSE 100 group updated investors on its half-year performance last month, flagging growth at the top end of its guidance range.
As of 14:27 GMT, Experian’s share price had added 0.11 percent to 1,864.50p, largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.17 percent higher at 6,789.45 points. The group’s shares have added more than 18 percent to their value over the past year, as compared with about an eight-percent dip in the Footsie.
Experian buys Compuscan
Experian announced in a statement today that it had agreed to acquire Compuscan for a cash consideration of R3,720m (about $263 million) payable on completion. The deal, which is subject to approval by the Competition Commission in South Africa, is expected to complete in the first quarter of financial year ending 31 March 2020.
“This is an important transaction for our business in South Africa and will provide opportunities more broadly across the African continent,” Experian’s chief executive Brian Cassin said in the statement. The FTSE 100 credit checking company expects the transaction to become accretive to benchmark earnings per share in its first full year of ownership.
Analysts on FTSE 100 group
As of December 8, the consensus forecast amongst 16 polled investment analysts covering Experian for the Financial Times has it that the company will outperform the market. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 1,891p.