LONDON - Experian agreed on Tuesday to buy the remaining stake in its Brazilian unit, Serasa, that it does not already own for $1.5 billion.
Under the terms of the deal, Experian, which provides credit checks for individuals and business, will buy a 29.6 percent stake in Serasa to take its holding in the Brazilian company to almost 100 percent.
Experian will acquire the stake from a consortium of banks, including HSBC and Banco Santander.
In 2007, Experian bought a 70 percent stake in Serasa, Brazil's largest credit data provider, and is looking to benefit from consumers' fast growing use of credit in the Latin American country.
As the financial crisis continues to hit developed markets in the United States and Europe, the credit information company is increasingly turning to emerging economies for new sources of growth.
“We see significant potential for future growth in Brazil,†Experian's chief executive, Don Robert, said in a statement . “We are delighted to have the opportunity to further invest in this exciting region.â€
Serasa has a roughly 60 percent market share in Brazil and reported a pretax profit of $312 million for the 12 months through March 31, according to a company statement.
Experian said it would use existing cash reserves and bank loan facilities to fund the deal.
The acquisition is expected to close by the end of the year.
Goldman Sachs and Morgan Stanley advised Experian on the deal.
