Reed Elsevier announces definitive agreement to acquire Accuity
Reed Elsevier
26 September 2011
Reed Elsevier announced today that it has entered into a definitive
agreement to acquire the entire issued share capital of Accuity Holdings
Inc. from Investcorp, a global investment firm, for a consideration of
£343m payable in cash.
Accuity is a leading US provider of online subscription-based data
solutions for the financial services industry which enable customers to
maximise the accuracy of their banking and payment transactions, and to
minimise the risk of non-compliance with government regulations in these
transactions. Accuity is a highly complementary business with both Reed
Elsevier’s Bankers’ Almanac and the financial services business of
LexisNexis Risk Solutions.
Accuity operates in three principal segments:
-
Payment Efficiency: provision of bank routing data files, filters,
directories and look-up tools which enable financial institutions and
corporates to execute transactions globally, increasing
straight-through-processing rates, and reducing errors and costs;
-
Risk Reduction: provision of data and software solutions that enable
financial institutions and corporates to screen against sanctioned and
high risk entities and people through customer filtering, account
screening and transaction monitoring; and
-
National Regulatory Services: provision of workflow, information and
consultancy services which help investment institutions remain
compliant with regulations.
Accuity is, like Bankers’ Almanac, an online data business with
subscription-based revenues, 95%+ customer retention rates and double
digit revenue growth. It has offices across the US and in the UK, and
provides solutions to the banking financial services, corporate and
government communities with over 14,000 clients, including most of the
world’s leading financial institutions and all of the top 25 US banks.
Accuity has over 300 staff and is based in Skokie, Illinois, United
States.
Reed Elsevier, through Reed Business Information’s Bankers’ Almanac, is
recognised as a leading provider of banking intelligence and online
banking data to financial services sector customers predominantly
outside the US. Additionally, Reed Elsevier’s LexisNexis Risk Solutions
business is a leading provider of risk reduction and compliance services
through its anti-money laundering (AML) and fraud prevention data and
solutions.
Accuity will be integrated with Bankers’ Almanac and will share the
combined data assets with LexisNexis Risk Solutions. The CEO of Accuity
is joining Reed Elsevier to run the enlarged business within the data
businesses of Reed Business Information.
The acquisition will be accretive to Reed Elsevier’s adjusted earnings
from the outset, with post tax returns expected to cover its weighted
average cost of capital by the third year. The transaction is subject to
customary conditions and regulatory consents and is expected to close in
the fourth quarter.
Reed Business Information CEO Mark Kelsey said: “Bankers’ Almanac and
Accuity are both strong brands with highly complementary products and
strengths and excellent geographic fit. The combination of the two
companies will enable us to offer customers much more comprehensive
products and services to meet their developing needs.”
James M. Peck, CEO of LexisNexis Risk Solutions said: “Accuity is a
business with prestigious content, in an attractive space with strong
fundamental growth characteristics. The combination will provide our
customers with expanded resources to contribute further to managing
their AML and Know Your Customer (KYC) requirements.”
Hugh Jones, president and CEO of Accuity, said: "By combining the assets
of Accuity and Bankers’ Almanac and LexisNexis Risk Solutions, we will
be able to provide new solutions to our customers that are
unprecedented. Our current and prospective customers will have access to
the premier banking information repository in both breadth and depth,
and this combination will enhance their businesses significantly."
- ENDS -
Enquiries
|
|
|
|
Sybella Stanley (Investors)
|
|
|
Patrick Kerr (Media)
|
+44 (0)20 7166 5630
|
|
|
+44 (0)20 7166 5646
|
|
|
|
|
Notes to Editors
About Reed Elsevier Group plc
Reed Elsevier Group plc is a world leading publisher and information
provider targeting the science and medical, legal, risk management, and
business to business sectors. We provide high value and flexible
information solutions to professional users. The group employs more than
30,000 people, including more than 16,000 in North America. Reed
Elsevier reported revenues for 2010 of £6,055m/€7,084m. Reed Elsevier
Group plc is owned equally by two parent companies, Reed Elsevier PLC
and Reed Elsevier NV; the combined market capitalisation of the two
parent companies is approximately £11bn/€13bn. Their shares are traded
on the London, Amsterdam and New York Stock Exchanges using the
following ticker symbols: London: REL; Amsterdam: REN; New York: RUK and
ENL.
About Reed Business Information
Reed Business Information brings leading brands to an audience of
millions of decision makers worldwide through its multi- platform media
of data services, online lead generation services, community websites,
magazines and events.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions through its cutting-edge technology, unique
data and advanced scoring analytics provides total solutions that
address evolving client needs in the risk sector while upholding high
standards of security and privacy. LexisNexis Risk Solutions customers
include businesses, organizations, US federal government and law
enforcement agencies. LexisNexis Risk Solutions is headquartered in
Alpharetta, Georgia, United States.
About Bankers’ Almanac
Bankers' Almanac has for over 160 years provided solutions to help
financial professionals make payments, conduct due diligence, assess
credit risk and carry out financial research on the world's banks. With
clients including all top 100 global banks, Bankers' Almanac is relied
upon daily by over 22,000 users worldwide.
About Accuity
Accuity is a leading provider of global payment routing data, AML
screening data and software and professional services that allow
organizations, across multiple industries, to maximize efficiency and
facilitate compliance of their transactions. Accuity maintains
authoritative and comprehensive databases globally with a reputation
built on the accuracy and quality of our data, products and
services. For more than 150 years, Accuity’s worldwide clients, located
in over 150 countries, have included C-level executives, managers and
technology professionals. The solutions and services Accuity provides
are packaged in multiple formats to serve their diverse needs.
About Investcorp
Investcorp is a leading provider and manager of alternative investment
products. Investcorp has offices in New York, London and Bahrain and is
publicly traded on the Bahrain Bourse (INVCORP). Investcorp has three
business areas: corporate investment in the US, Europe and the Gulf,
real estate investment in the US and global hedge funds. As of June 30,
2011, Investcorp had $11.8 billion in assets under management.
Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV