Credit information company, Equifax is gaining a little more power. Computer Sciences (News - Alert) Corp., a technology services provider, is reportedly selling its credit services unit to Equifax for $1 billion in cash, and record after-tax proceeds of about $750 million to $800 million. The sale, which is expected to be concluded by the end of the year, was part of an initiative by CSC (News - Alert) to rid itself of non-core business units and raise cash in an effort to cut costs by $1 billion over the next year or so.
Falls Church, Virginia-headquartered CSC provides information technology and business process outsourcing (BPO) to cover systems analysis, applications development, network operations, end-user computing and data center management. It also offers cloud computing and cyber security protection, infrastructure- as- a- service (IaaS), software- as- a- service (SaaS (News - Alert)), business process- as- a- service (BPaaS), platform- as- a- service (PaaS), cyber security managed services and other technologies.
CSC said it plans to use about $300 million to $400 million of the proceeds to buy back shares, and contribute another $300 million to $400 million to its pension plans, according to a Reuters article posted this morning.
CSC’s credit services unit provides financial services and consumer credit information to the automotive industry, banks, retail establishments, mortgage companies, medical entities and utilities in the U.S. The division represented 23 percent of CSC’s revenue in 2012, reported Reuters (News - Alert).
CSC had been losing money over renegotiating a multibillion-dollar contract with Britain's National Health Service.
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Edited by Brooke Neuman