Experian expands down under with strategic acquisition of illion

Experian, a leading global information services company, has announced its strategic acquisition of illion, one of the premier consumer and commercial credit bureaus in Australia and New Zealand. This move, valued at up to A$820 million (approximately US$532 million), signifies Experian‘s intensified commitment to the Australia and New Zealand (A/NZ) market, promising to reshape the competitive dynamics in the region.

Brian Cassin, CEO of Experian, expressed enthusiasm about the acquisition, noting it as a pivotal step in Experian’s long-standing commitment to A/NZ. This acquisition is seen as highly complementary to Experian’s existing operations, aimed at delivering exceptional value and offering more choices to clients in the area.

illion, established in 1986, has been a cornerstone in providing consumer and commercial credit reporting, alongside identity and verification solutions in A/NZ. This acquisition is anticipated to enhance Experian’s portfolio, adding significant depth in consumer bureau services, commercial credit bureau services, and identity management solutions.

The Australian lending market is evolving rapidly, with regulatory reforms introducing comprehensive data and open data services. These changes have spurred a demand for analytical tools and data-driven services, expanding the addressable market for companies like Experian. The integration of illion’s capabilities with Experian’s analytical products, decisioning software, and certain open banking solutions is expected to offer a more robust suite of services to businesses in the region.

Experian aims to leverage this acquisition to accelerate the adoption of digital services in A/NZ, enhancing credit granting processes, digital user experiences, fraud prevention, and banking efficiency across sectors. The company is particularly excited about introducing innovations such as the Experian Ascend unified platform and the PowerCurve decisioning suite in Australia, which are expected to transform the market landscape.

The transaction is set to be funded from Experian’s existing cash resources and is currently awaiting regulatory review by the competition authority in Australia, expected to conclude in the second half of the calendar year 2024. In its first full year of ownership, Experian anticipates the acquisition to add approximately A$175 million in revenues and A$65 million in Benchmark EBITDA, marking a significant enhancement over its current operations in A/NZ.

This acquisition represents a strategic alignment of Experian’s global expertise with illion’s regional dominance, creating a formidable force in the A/NZ financial services sector. It underscores Experian’s dedication to innovation-led growth and sets a new benchmark in providing comprehensive, technology-driven financial solutions. As the financial landscape continues to evolve, this partnership is poised to offer more sophisticated, efficient, and secure services, marking a new era of digital banking and credit services in Australia and New Zealand.