Equifax 2011 Annual Report Download - page 51

related to the Brazilian Transaction and is included in other income
(expense) in the Consolidated Statements of Income. Tax expense of
$17.5 million was also recorded in conjunction with the Brazilian
Transaction.
Equifax has committed to make certain additional funding available to
BVS. Until May 31, 2015, BVS will have the right to borrow up to $55
million from Equifax for general corporate purposes; any borrowings
would be due and payable on May 31, 2015. Payments for principal
and interest on any borrowings can be convertible, at Equifax’s
option, into additional shares of BVS nonvoting preferred stock.
Preferred shares issued as a result of any borrowings will be convert-
ible to common shares under specific conditions. There were no
borrowings outstanding as of December 31, 2011.
3. DISCONTINUED OPERATIONS
On April 23, 2010, we sold our APPRO loan origination software
business (‘‘APPRO’’), for approximately $72 million. On July 1, 2010,
we sold substantially all the assets of our Direct Marketing Services
division (‘‘DMS’’) for approximately $117 million. Both of these busi-
nesses had previously been reported in our U.S. Consumer
Information Solutions segment. The historical results of these opera-
tions for the years ended December 31, 2010 and 2009 are classified
as discontinued operations in the Consolidated Statements of
Income. Revenue for these businesses for the years ended
December 31, 2010 and 2009 was $42.1 million and $108.5 million,
respectively. Pretax income was $65.4 million and $25.6 million for
the years ended December 31, 2010 and 2009. We recorded a gain
from the sale of APPRO in the second quarter of 2010 of $12.3 mil-
lion, after tax, and a gain from the sale of DMS in the third quarter of
2010 of $14.9 million, after tax, both of which were classified as
discontinued operations in the Consolidated Statements of Income.
During 2011, we settled various contingencies related to past
divestitures that resulted in $1.5 million of income from discontinued
operations, net of tax.
4. ACQUISITIONS AND INVESTMENTS
2011 Acquisitions and Investments. On August 1, 2011, to further
enhance our market position, we acquired DataVision Resources,
which provides data and business solutions to the mortgage, insur-
ance and financial services industries, for $50.0 million. The results of
this acquisition have been included in our TALX Workforce Solutions
segment subsequent to the date of acquisition.
To further broaden our product offerings, during the twelve months
ended December 31, 2011, we completed smaller acquisitions of
information services businesses in the European and Latin American
regions of our International segment as well as our U.S. Consumer
Information Solutions and TALX Workforce Solutions segments for
$82.4 million. The results of these acquisitions have been included in
our operating results subsequent to the date of acquisition and are
not material.
2010 Acquisitions and Investments. On October 1, 2010, to
broaden our portfolio of solutions, we acquired Anakam, Inc., a
provider of large-scale, software-based, multi-factor authentication
solutions, for $64.3 million. The results of this acquisition have been
included in our U.S. Consumer Information Solutions segment
subsequent to the date of acquisition.
To further enhance our market share, during the twelve months
ended December 31, 2010, we completed four additional acquisi-
tions totaling $12.3 million. These transactions were in our
International segment and the results of these acquisitions have been
included in our operating results subsequent to the date of acquisi-
tion and are not material.
2009 Acquisitions and Investments. On December 23, 2009, as a
part of our long-term growth strategy of expanding into emerging
markets, we formed a joint venture, Equifax Credit Information
Services Private Limited, or ECIS, to provide a broad range of credit
data and information solutions in India. We paid cash consideration of
$5.2 million for our 49 percent equity interest in ECIS.
On November 2, 2009, to further enhance our income and identity
verification service offerings, we acquired Rapid Reporting Verification
Company, or Rapid, a provider of IRS tax transcript information and
social security number authentication services, for $72.5 million. The
results of this acquisition have been included in our TALX Workforce
Solutions operating segment subsequent to the acquisition.
On October 27, 2009, we acquired IXI Corporation, or IXI, a provider
of consumer wealth and asset data, for $124.0 million. This acquisi-
tion enables us to offer more differentiated and in-depth consumer
income, wealth and other data to help our clients improve their
marketing, collections, portfolio management and customer manage-
ment efforts across different product segments. The results of this
acquisition have been included in our U.S. Consumer Information
Solutions operating segment subsequent to the acquisition date.
EQUIFAX 2011 ANNUAL REPORT 49