Credit-information provider Equifax Inc.‘s Brazilian subsidiary has merged with the second largest consumer credit bureau in that country.
Equifax do Brasil Ltda. received a one-third stake in Boa Vista Services S.A. in exchange for Equifax technology and its agreement to invest $100 million in the joint venture for new product development.
The entities will operate separately but will count more than 30,000 customers through their partnership. The deal with Boa Vista will help Equifax expand its reach among Brazil’s growing middle class.
“They have certainly the data for Brazil,” Daryl Toor, an Equifax spokesman, told GlobalAtlanta. “We have the technology and a lot of proven products, both from the U.S. and 14 other international countries, that allow us to leverage their data in a much better way.”
Atlanta-based Equifax sells credit reports as well as credit and fraud monitoring services in the U.S. and 14 other markets.
Equifax eventually hopes to hold a controlling stake in the venture. As part of the agreement, Equifax will have first right of refusal for any shares that become available. The transaction is subject to regulatory approval.
Visit www.equifax.com for more information.