This deal doesn’t involve Google, Yahoo, Microsoft, or any of the other companies we usually cover. But it does involve a heck of a lot of money – about $4 billion – and so the acquisition of ChoicePoint by Reed Elsevier seems worth a mention.
ChoicePoint was born out of better-known Equifax in 1997; from the relatively narrow field of credit reporting, it has become a self-described “provider of technology and information-based risk mitigation products.” Reed Elsevier, for its part, is a massive publisher and information provider (LexisNexis is one of its more recognizable brands).
Sir Crispin Davis, Reed Elservier
(Photo Credit: TotalJobs)
Perhaps you can imagine some overlap between these two giants, or perhaps not. Either way, Sir Crispin Davis, Reed Elsevier’s CEO, explained in a statement, “The acquisition of ChoicePoint represents a major further step in the building of Reed Elsevier’s risk management business and in the development of our online workflow solutions strategy.” Also, “The market growth in risk information and analytics is highly attractive.”
The acquisition still has to undergo regulatory scrutiny and receive shareholders’ approval, but both sides believe everything can be wrapped up during this coming summer. Jessica Hodgeson noted, “Shares in Reed Elsevier rose strongly early Thursday, as analysts welcomed the strategic moves, although they noted Reed was paying a full price for ChoicePoint.”
As a result, the deal looks to be a bit of a thumb in the eye of any recession, and will perhaps provide a bit of a nudge to other companies’ “online workflow solutions.” In any event, you now know about $4.1 billion getting ready to change hands.
