TransUnion announces agreement to acquire a majority stake in the consumer business of “Buró de Crédito” in Mexico

The company is acquiring an additional 68% of TransUnion de México from its main shareholders, which include several of the largest banks operating in the country.

MEXICO: TransUnion (NYSE:TRU) has signed a definitive agreement to acquire a majority stake in Trans Union de México, S.A., S.I.C., the consumer credit risk information business of Mexico’s largest credit information company, Buró de Crédito.

 Buró de Crédito currently consists of a commercial (business) credit risk information business and a consumer (individual) credit risk information business. The expected transaction does not include the commercial segment.  

TransUnion currently owns approximately 26% of TransUnion de México, has sat on its Board of Directors for more than two decades, and has been one of its most important technology providers.  

TransUnion has agreed to acquire an additional 68% of TransUnion de México from its main shareholders, which include several of the largest banks operating in Mexico, for a cash outlay of approximately MXN 11,500 million or USD 560 million, based on an enterprise value of MXN 16,800 million, or USD 818 million, using an exchange rate of MXN 20.53 (14 January 2025), increasing TransUnion’s stake to 94%.  

“This expansion in Mexico confirms our commitment to driving trust in global commerce,” said Chris Cartwright, President and CEO of TransUnion. “Credit bureaus are a catalyst for financial inclusion; we are excited about the opportunity to bring the benefits of our cutting-edge technology, innovative solutions and industry expertise to Mexican consumers and businesses. We also look forward to supporting the country’s digital transformation goals to empower consumers with greater economic opportunity.”  

TransUnion operates in more than 30 countries and is headquartered in the United States. Its innovative solutions include products that promote financial inclusion, mitigate fraud and empower consumers to access credit and manage their financial health. With extensive experience in scaling international businesses, its global technology and operating model support the customer experience.  

Mexico is the world’s 12th largest economy and the second largest in Latin America. With a growing population, consumer credit in Mexico is expanding and more than half of adults have at least one financial product. Although credit penetration remains lower in Mexico than in other Latin American countries, it has increased significantly over the last decade, rising from 34% to 42% of GDP between 2013 and 2023¹. TransUnion plans to bring its global capabilities and expertise to the market, strengthening the services provided and continuing to drive financial inclusion.  

“We believe this acquisition will strengthen our leadership position in the region, making TransUnion the largest credit information company in Spanish-speaking Latin America,” said Carlos Valencia, President of TransUnion Latin America. “We see a substantial opportunity to introduce global products such as next-generation risk scoring tools, fraud mitigation solutions and financial health tools. We also plan to expand into new market sectors such as fintech and insurance, among others.”  

“Buró de Crédito will become part of TransUnion International and will leverage the strengths of our global operating model,” added Todd Skinner, President of International at TransUnion. “In the medium and long term, we envisage growth in the local market in line with a favourable environment and the innovation TransUnion brings.”  

The business is expected to generate approximately USD 145 million² in revenue and USD 70 million² in adjusted EBITDA³ in 2024. Based on current exchange rates and financial estimates, the acquisition is expected to be accretive to adjusted diluted earnings per share in the first year of ownership. We expect the transaction to close by the end of 2025, subject to regulatory approvals and closing conditions. TransUnion expects to fund the transaction through a combination of debt and cash.  

Finally, after the transaction closes, TransUnion will leverage its global operating model to strengthen Buró de Crédito’s existing capabilities and its service model for the Mexican market.  

About TransUnion (NYSE: TRU)  

TransUnion is a global information and insights company with more than 13,000 associates operating in more than 30 countries, including the Dominican Republic. We make trust possible by ensuring that each person is reliably represented in the marketplace. We do this by providing a multidimensional view of consumers, managed

with care. Through our acquisitions and technology investments, we have developed innovative solutions in areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good®, creating economic opportunities, great experiences and personal empowerment for millions of people around the world. 

About Buró de Crédito  

Buró de Crédito is the leader in Mexico, managing the most complete and secure credit database for individuals and businesses. Buró de Crédito is made up of two credit information companies: Trans Union de México, S.A., SIC (the credit bureau for individuals) and Dun & Bradstreet, S.A., SIC (the credit bureau for individuals with business activity and legal entities). With 29 years in the market, Buró de Crédito provides services for collecting, handling, delivering or sending information on the credit history of individuals and legal entities. Its other complementary products and services are also essential for individuals, businesses and lenders, as they facilitate the management and analysis of financial risk. In this way, Buró de Crédito helps speed up and simplify decision-making for business generation and the healthy expansion of credit, thus contributing to the country’s economic development. http://www.burodecredito.com.mx 

TransUnion Forward-Looking Statements  

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 of the United States of America. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to risks and uncertainties.

Actual results may differ materially from those described in these statements. Any statement contained in this press release that is not a historical fact, including statements about our beliefs and expectations, is a forward-looking statement. Such statements include information about the expected benefits of the transaction, including strategic, business and operational benefits, the expected timetable for completing the transaction, the expected sources of financing for the acquisition, and descriptions of our business plans, outlook and strategies. These statements often include words such as “expect,” “believe,” “anticipate,” “envision,” “plan,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continue,” “seek,” “predict,” or the negatives of these words and other similar expressions. 

Factors that could cause actual results to differ materially from those described in the forward-looking statements include: (i) the inability to realise the synergies and other expected benefits of the proposed acquisition of Trans Union de México; (ii) the risk that required regulatory approvals are not obtained or are obtained subject to unanticipated conditions; (iii) the failure to satisfy any of the closing conditions in the definitive purchase agreement on a timely basis or at all; (iv) delay in closing the proposed acquisition; (v) the possibility that the proposed acquisition, including the integration of Trans Union de México, may be more costly than expected; (vi) business disruption during the pendency of the proposed acquisition and/or following its closing; (vii) risks related to the diversion of management time from ongoing business operations and other opportunities due to the proposed acquisition; (viii) the effects of pending and future legislation, and regulatory actions and reforms; (ix) macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond TransUnion’s control; (x) risks related to TransUnion’s indebtedness, including our ability to make timely payments of principal and interest and our ability to comply with the covenants in the agreements governing our indebtedness, other one-time events and other factors that can be found in our Annual Report on Form 10-K for the year ended December 31, 2023, and any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the U.S. Securities and Exchange Commission and are available on TransUnion’s website (www. transunion.com/tru) and on the Securities and Exchange Commission’s website (www.sec.gov). Many of these factors are beyond our control.  

The forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.