Equifax Inc. (Equifax), a world-wide leader in enabling and securing global commerice, has sold its collection services business known as Equifax Risk Management Services (ERMS) in the US, the UK and Canada to two separate concerns for an aggregate price of US$150 million. The ERMS operations in Canada, with 500 employees, and in the UK, with 150 employees, have been purchased by IntelliRisk Management Corp. (IntelliRisk) of Columbus, Ohio—an international leader in accounts receivables collections, teleservices and outsourcing.
Equifax also entered into multi-year contracts to provide credit information products and services to IntelliRisk, and the value of these services is included in the sale price. Equifax plans to use net cash proceeds of approximately $100 million from the divestiture of these businesses to pay down debt.
John Heft, Vice-President, General Counsel and Corporate Secretary of Equifax Canada Inc., spearheaded the Canadian transaction with external counsel Michael Bantey of Borden Ladner Gervais LLP (BLG), assisted by Richard Comtois, Patricial Galella and Rhonda Friesen from the Montreal office. Also assisting were Howard Silverman of BLG’s Toronto office, Maria Doerksen of the Calgary office and Brian Thom of the Vancouver office.
Jim Seery of Piper Marbury Rudnick & Wolfe LLP acted for IRMC in the US. In Canada, IRMC was represented by a team from Gowling Lafleur Henderson LLP comprised of Bob Dechert, Charmaine Chung, Martin Ross and George Corn.