Experian acquires majority stake in Arvato Financial Solutions Risk Management division

20 May 2020 - Experian, the global information services company, has agreed to acquire a majority stake in the Arvato Financial Solutions Risk Management division, a leading credit risk management service provider in Germany. Arvato Financial Solutions is a subsidiary of the Bertelsmann Group.

Brian Cassin, Chief Executive Officer, said: “We are excited to be joining forces with Arvato Financial Solutions Risk Management, the second-largest credit bureau in Germany, and which will transform our presence in EMEA. We will combine our strengths and industry expertise to greatly enhance the choices available to businesses and consumers in Germany, Austria and Switzerland, helping them to better use data and make easier and faster decisions. We look forward to welcoming the Arvato Financial Solutions Risk Management division team to Experian and a strong collaborative partnership with its parent, Arvato Financial Solutions.”

The transaction will combine Experian’s expertise, Decisioning and Analytics product portfolio, and advanced global innovation platforms, with Arvato Financial Solutions Risk Management’s core data assets and sector expertise to create a uniquely innovative platform delivering benefits to clients of both organisations.

Today, Arvato Financial Solutions’ Risk Management division provides leading edge data assets and analytical tools for corporations all over the German, Austrian and Swiss region, making it the market leader in financial services for a number of industries. Its high-quality data products, tailored industry solutions (such as e-commerce, telecommunications and insurance) and focus on client service have built a successful business with excellent foundations for future growth. Its principal offerings are credit rating services for consumer credit information, including credit checks, scores, authentication, monitoring, anti-fraud and some decisioning tools.

Experian will bring its global expertise in analytics, technology and infrastructure to build on these core assets, delivering a stronger, more comprehensive set of innovative capabilities in consumer credit information, decisioning, analytics, identification and fraud, with broad coverage across the region.

Once closed, the acquisition will see Experian take a 60% stake in the Arvato Financial Solutions Risk Management division. The remaining 40% will continue to be held by Arvato Financial Solutions, a subsidiary of the media, services and education company Bertelsmann.

Marco Benvenuto, COO of Experian EMEA, said: “The Risk Management division of Arvato Financial Solutions is a successful business built up over many years with established relationships in key segments, a strong and successful sales force. We are excited to combine the strengths of both organisations for the benefit of clients and customers across the DACH region and potentially beyond. Our global innovation platforms and services will support Arvato Financial Solutions Risk Management’s regional expertise – bringing clients the best of our new technology and allowing them to make better, faster decisions. We are excited to be forging this collaborative partnership with the Bertelsmann Group and we look forward to exploring future opportunities together.”

Rolf Hellermann, CEO of Arvato Financial Solutions, said: “With this partnership we fundamentally strengthen the market position of Arvato Financial Solutions’ Risk Management division in Germany as well as the associated industry expertise. Experian's outstanding position and correspondingly excellent know-how for innovative platforms, Big Data and AI in the financial environment will create new standards for integrated risk management services in the GSA market."

Experian has been consistently recognised as one of the world’s most innovative companies. In 2019 it introduced Experian Ascend, its fully integrated big data and analytics platform, to the EMEA region, offering businesses of all sizes access to a wide range of anonymised Experian data in combination with industry-leading analytical tools and expert consultancy support. Experian’s Ascend, PowerCurve, ExperianOne and Identity & Fraud services deliver faster, smarter insights and decision-making to clients, ultimately delivering greater access to finance for consumers, sole traders and SMEs alike.

Closing of the proposed acquisition is subject to the EU’s competition review process.

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