Consumer, commercial and workforce information solutions
) recently announced the acquisition of TDX Group, a UK-based
debt-management firm, for a purchase consideration of $327
Founded in 2004, TDX Group provides businesses with
technology, data and advisory solutions to improve debt
liquidation and ensures fair management of debt collections and
Leveraging TDX's technology, software, services and platforms,
Equifax will be able to expand its debt-collection capabilities.
The acquisition of TDX Group will enable Equifax to provide the
broadest possible insight into consumer performance, financial
status, capabilities of customers and market opportunities.
Moreover, it will further solidify Equifax' presence in the UK,
which in turn will boost its revenues, going forward.
Today customers look for solutions that streamline their
collection capabilities. We believe the addition of TDX's
services will help Equifax to provide better data, technology and
advisory solutions and position it as a leader in important
Equifax had cash balance of $131.9 billion at the end of the
third quarter of fiscal 2013 compared with $104.9 billion in the
previous quarter. The company generated $374.4 million cash from
operating activities in the first nine months of fiscal 2013.
Therefore, considering its cash balance Equifax will have no
problem buying the company.
Apart from this, Equifax has been entering into partnerships
to expand its product portfolio, which will boost its market
share. We believe that Equifax's strategic initiatives for
product innovation, expansion of data assets through acquisitions
and continuous share gains in North America are encouraging.
Given the company's strong correlation with the consumer and
financial markets as well as its U.S. and European exposure, we
see a gradual improvement in results. Competition from
Automatic Data Processing, Inc.
) is however a concern.
Currently, Equifax has a Zacks Rank #2 (Buy). Investors
interested in the technology sector can also consider
Western Digital Corp.
), which carries a Zacks Rank #1 (Strong Buy).
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