ClearScore

ClearScore is the British company specializing in online consumer support in financial questions.

The company selects financial products to individuals according to their requirements, offers the information services directed including on increase in financial literacy and also provides free credit reports, scorings and financial offers suitable the user, such as credit cards, consumer loans, mortgage loans, car loans and other services.

ClearScore renders services to individuals free of charge, and gains income from awards for the recommendations of credit institutions and other service providers.

As of 2018, thanks to model of a free subscription ClearScore in Great Britain totals more than 6 million users.

History

2018: Experian buys ClearScore

The Experian company, the player of global market of information services, at the end of March, 2018 declared determination to purchase the British financial technical-startup of ClearScore which specializes in online support of individuals in financial questions for £275 million ($385 million). Financing of purchase is performed at the expense of the existing available credit resources Experian.

Experian buys ClearScore financial technical-startup for $385 million. Photo of www.nottinghampost.com

The transaction still should get official approval of Management on protection of the competition and the markets, other standard conditions also should be satisfied. Closing of the transaction is expected during 2018, at the same time the possibility of payment of extra fee based on activity of ClearScore for the first complete financial year of ownership is provided. In particular, as expected, for 2018 calendar year ClearScore will receive revenue in the amount of about $55 million that is about 50% more, than in 2017. It is supposed that steady growth will continue also in 2019 calendar year.

According to representatives of Experian, as a result of acquisition of ClearScore two fast-growing British consumer brands will integrate, and both of them will save the identity. Assets and competences of two businesses harmoniously supplement each other. Upon completion of the transaction ClearScore will join the Experian direction on work with individuals (Consumer Services Great Britain). It is expected that the company will benefit from extensive data, analytical competences and implementational opportunities of Experian, and the culture of Experian will be replenished with skills of ClearScore in development of sales services and also support of the high level of the involvement of users. Besides, ClearScore will help Experian with achievement of the goal on provision of services to individuals on a global scale: recently the company began to render services in the Republic of South Africa.

Purchasing ClearScore, the company takes the next important step in implementation of the strategy which will allow to offer services to the British consumers actively. Experian purpose — to provide the bigger choice more convenience to those who wish to receive suitable financial products at the best price, and to help credit institutions to develop at the same time with higher quality and the individualized products for individuals — Brian Kassin, the CEO of Experian said. — We will be glad to accept the ClearScore group in our ranks and to include the ClearScore brand in the corporate offer of Experian.

According to preliminary estimates, in 2018 calendar year the contribution ClearScore to EBIT of Experian company will be equal to zero and will increase approximately up to $20 million in 2019 calendar year, up to a deduction of integration costs. At the same time, thanks to integration with Experian business increase in EBIT will be supported by considerable synergy of expenses — about $25 million a year. Besides, according to forecasts of experts of Experian, record single integration expenses in the amount of $20 million will pay off thanks to integration of business and implementation of the planned synergy.