IT contractor CSC Corp. announced Monday it has reached a definitive agreement to sell its credit services to Equifax for $1 billion.
The Falls Church-based company said the sale was part of its plan to rebalance its portfolio and focus on next-generation technology solutions and services. The after-tax proceeds of the sale will be between $750 million and $800 million. CSC plans to use $300 million to $400 million to repurchase shares, contribute $300 million to $400 million to its pension plans and apply the remainder to general corporate needs.
CSC’s credit services unit is the largest consumer credit reporting agency and has been an Equifax affiliate for more than 20 years.
The transaction is expected to close by the end of the year after regulatory reviews.
The companies anticipate closing of the transaction by the end of the calendar year after concluding regulatory reviews. This deal marks CSC’s second divestiture in six weeks.
CSC expects that its cash deployment strategy will help to offset the absence of earnings per share contribution from the credit services unit in 2014 and subsequent years.
The company announced in late October its plans to sell the consulting and systems integration services parts of its business in Italy.
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