A Brazilian subsidiary of Atlanta-based Equifax is merging its credit reporting operations with Brazil's second-largest consumer credit bureau, a move the company said will strengthen its presence in a large and growing market.
The merger of Equifax do Brasil and Boa Vista Servicos "will bring the most comprehensive credit information solutions to the Brazilian business community," the company said.
The combined entity will have more than 125 million consumer and commercial files, and more than 30,000 customers.
Boa Vista has the largest information base of loan, credit and behavior data of Brazilian consumers in the country.
Equifax will become a joint owner of Boa Vista along with Boa's existing shareholders. Equifax, which will own 15 percent of the new company, said it plans to eventually gain a controlling stake in the merged operation.
No cash was exchanged in the deal. But Equifax said it has committed as much as $100 million for new product development and other initiatives.
Equifax chairman and CEO Richard Smith said, "This is a very important strategic transaction for us which reinforces our long-term commitment to Brazil by creating a larger, more powerful presence in this fast-growing market."
Equifax intends "to grow aggressively" in the market, Smith said.
Equifax do Brasil has provided asset and liability information on commercial businesses in Brazil for 23 years. Equifax has operations in 16 countries on four continents.
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