Announcement • Aug 08
Equifax do Brasil Ltda. made an offer to acquire remaining 90% stake in Boa Vista Serviços S.A. (BOVESPA:BOAS3) from Associação Comercial de São Paulo and others. Equifax do Brasil Ltda. made an offer to acquire remaining 90% stake in Boa Vista Serviços S.A. (BOVESPA:BOAS3) from Associação Comercial de São Paulo and others for BRL 3.8 billion on December 19, 2022. Equifax do Brasil Ltda. entered into a definitive agreement to acquire remaining 90% stake in Boa Vista Serviços S.A. (BOVESPA:BOAS3) from Associação Comercial de São Paulo and others for BRL 3.8 billion on February 9, 2023. Under the terms of the proposal, Equifax would offer all Boa Vista Serviços shareholders the option to receive (1) BRL 8.00 per share in cash, (2) a combination of cash and Brazilian Depositary Receipts ("BDRs") representing shares of Equifax common stock or (3) a combination of shares of Equifax Brasil common stock and cash or Equifax BDRs. Equifax currently holds approximately 10 percent of Boa Vista Serviços' shares and ACSP holds approximately 30 percent. The transaction is subject to review and approval by the Boa Vista Serviços Board of Directors. If approved by the Boa Vista Serviços Board of Directors, the transaction would be subject to Boa Vista Serviços shareholder approval and other customary closing conditions. The transaction is expected to close in mid-2023. The transaction is expected to be EPS accretive in year one. As of February 9, 2023, Board of Boa Vista Serviços S.A. approved the offer. As of June 29,2023, Boa Vista Serviços S.A shareholder approved the transaction. Equifax shareholders approved the transaction in June. As of April 20, 2023, the transaction is expected to close in the third quarter. As of June 29, 2023, the transaction is expected to be finalized in early August 2023.
BofA Securities is serving as financial advisor to Equifax, and Hogan Lovells US LLP and Machado Meyer Advogados are acting as legal counsels to Equifax. Adrienne Ellman, John Beckman and Richard Aftanas of Hogan Lovells US LLP and Isabel Carvalho of Hogan Lovells Brazil acted as legal advisor for Equifax. Citigroup Global Markets Assessoria Ltda. acted as financial advisor to Boa Vista Serviços. UBS acted as financial advisor and fairness opinion provider, Itaú Corretora de Valores S.A. acted as transfer agent and Itaú Unibanco S.A. acted Depository Bank to Boa Vista.
Equifax do Brasil Ltda. made an offer to acquire remaining 90% stake in Boa Vista Serviços S.A. (BOVESPA:BOAS3) from Associação Comercial de São Paulo and others on August 7, 2023. Márcio Fabbris will continue in his leadership position as Chief Executive Officer of Boa Vista Serviços. Former Equifax Chief Executive Officer Paulino Barros will join the Equifax Brasil board of directors. Major Estimate Revision • Jun 21
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from R$976.8m to R$913.0m. EPS estimate also fell from R$0.531 per share to R$0.45 per share. Net income forecast to shrink 0.4% next year vs 14% growth forecast for Professional Services industry in Brazil . Consensus price target of R$7.00 unchanged from last update. Share price was steady at R$7.85 over the past week. Reported Earnings • May 12
First quarter 2023 earnings: Revenues miss analyst expectations First quarter 2023 results: Revenue: R$209.0m (flat on 1Q 2022). Net income: R$39.4m (down 30% from 1Q 2022). Profit margin: 19% (down from 27% in 1Q 2022). Revenue missed analyst estimates by 3.2%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Global Professional Services industry. 
