US based technology services provider Computer Sciences Corp (CSC) has signed an agreement to sell its credit services unit to information provider Equifax for $1bn in cash.
The deal, expected to close by the end of 2012 after receiving regulatory approval, is in line with CSC’s corporate transformation strategy to focus on future technologies and services.
The after-tax proceeds from the sale will be approximately $750m to $800m.
CSC will spend $300m to $400m to buy back shares and fund pension plans respectively, while remaining amount will be used for corporate purposes.
The credit services unit manages credit files in 15 Midwestern and central US states, representing 20% of the population in the country, and has been an Equifax affiliate for over 20 years.
The technology provider employs 95,000 staff and its reported revenue was $15.7bn for the 12 months ended on 28 September 2012.
Headquartered in Georgia, Equifax is a consumer credit reporting agency that employs nearly 7,000 people in 15 nations in North America, Latin America and Europe.