Credit reporting agency Equifax has signed an agreement to acquire Appro Systems, a provider of automated lending and credit risk management technology to financial services firms, for $92 million.
The cash transaction includes non-operating liquid assets. Equifax says the net cash impact on its business will be approximately $74 million after the disposition of certain assets.
Based in Louisiana, privately-held Appro provides credit underwriting, origination and fulfilment technologies for bank and automotive lending and claims 150 bank and credit union customers. The company generated $20 million in annual revenue last year and has more than doubled its revenue over the past two years.
Following the acqusition, Appro founder, chairman and CEO Steve Uffman will join Equifax as group executive of the firm's analytics division - enabling technologies.
Tom Chapman, chairman and CEO, Equifax, says: "This acquisition accelerates us toward our goal of establishing Equifax's enabling technologies as a vital and visible growth engine."
Based on current economic conditions, Equifax says it expects annual revenue growth for its enabling technologies business to be in the mid-teens.
The deal is expected to close within 90 days.