Experian pays £200m to snap up US fraud detection agency

City A.M. Reporter
EXPERIAN, the information services group, said yesterday it has agreed to buy US fraud detection group The 41st Parameter for $324m (£200m).

Experian said it would fund the deal from existing cash resources.

The group said the purchase extends its presence in the fraud prevention market, complementing its existing activities in fraud detection and online authentication.

Analysts suggested that the price – at 12.5 times The 41st Parameter’s expected 2013 sales – was high and could hit Experian’s earnings per share next year, but said that the target group’s sales growth could lead to revenue synergies in the longer term.

Experian said yesterday that for the year to 31 December, it expects 41st Parameter to deliver approximately $26m in revenues.

The FTSE 100-listed group is currently on the look out for a new chairman, after Sir John Peace announced at the beginning of May that he was planning to step down after seven years in the role.