Experian in talks to sell transaction processing unit

Experian Group Ltd.said it’s in “advanced” talks about a sale of its transaction processing activities in France.
Discussions are taking place with Doc@Post, a unit of French postal service operator La Poste, and private-equity firm Advent International.
Experian said in January it would conduct a strategic review of the French division and its fit with other activities as part of efforts to cut its costs and streamline operations. The unit processes cheques and credit card payments for banks and financial institutions. Revenue from the division for the year ended March 31, 2007, was USD 308 million compared with USD 3.49 billion for the entire company.
Experian fell 12.75 pence, or 2.9 percent, to 430.25 pence in London, valuing the company at 4.41 billion pounds (USD 7.74 billion).
The company in May boosted its target for annual savings to USD 110 million, from the USD 80 million announced in January. The plan should deliver savings of USD 50 million in fiscal 2009, the company said.

Experian Group Ltd.said it’s in “advanced” talks about a sale of its transaction processing activities in France.
Discussions are taking place with Doc@Post, a unit of French postal service operator La Poste, and private-equity firm Advent International, Dublin-based Experian said in a statement distributed by the Regulatory News Service.
Experian said in January it would conduct a strategic review of the French division and its fit with other activities as part of efforts to cut its costs and streamline operations. The unit processes cheques and credit card payments for banks and financial institutions. Revenue from the division for the year ended March 31, 2007, was USD 308 million compared with USD 3.49 billion for the entire company.
“Obviously they indicated what’s going to happen,” Tony Shepard, an analyst at Charles Stanley & Co Ltd. said by phone today. “People accept that this is not Experian’s core business and would probably be better off under someone else.” Shepard, who has an “accumulate” recommendation on the stock, declined to estimate a possible value for the transaction.
Experian fell 12.75 pence, or 2.9 percent, to 430.25 pence in London, valuing the company at 4.41 billion pounds (USD 7.74 billion).
“We can’t give any comment on valuation or timing at this stage,” an external spokesman for the company, who asked not to be named, said by phone today.
The company in May boosted its target for annual savings to USD 110 million, from the USD 80 million announced in January. The plan should deliver savings of USD 50 million in fiscal 2009, the company said.
“There can be no certainty that the talks will lead to a transaction,” Experian said in the statement.