Equifax to sell unit to Alliance Data for $117 mn

SAN JOSE, USA: U.S. credit reporting company Equifax Inc said it agreed to sell its direct marketing services unit to credit card processor Alliance Data Systems Corp for $117 million.

The divestiture will hurt profit by about 4 cents in the second half of the year, but will result in a one-time gain of 8 cents a share, following the closing of the deal, Equifax said.

Proceeds from the sale will be used for general corporate purposes, Equifax said.

Separately, Alliance Data said while it does not expect the deal to add to profit this year, it sees addition to earnings thereafter.

Equifax's DMS unit has about 200 full-time employees and they will be a part of Alliance Data's Epsilon business.

The deal is likely to be closed in the third quarter, Alliance Data said.

Equifax shares closed at $29.34 Tuesday on the New York Stock Exchange, while those of Alliance Data closed at $68.33.