Experian stops buy-back after $850m acquisition

Experian’s acquisition of Passport Health Communications follows its $324m deal to buy US fraud detection firm, 41st Parameter, last month. The Nottingham company, which competes against Leeds-based CallCredit, first entered the US healthcare payments market five years ago and has steadily expanded its position through investments and acquisitions.

Experian had also spent $322m on buying back shares from investors at the end of September, having committed in May to buying back half a billion dollars worth in the next 12 months.

The company, best known for running consumer credit checks for banks, landlords and retailers, said it would stop returning money to shareholders via the buyback following its latest acquisition.

“There’s a little bit left to go but it doesn’t make sense to continue,” chief executive Don Robert said.

However Mr Robert said the group planned to continue to increase its dividend payouts to shareholders.

The group is paying an interim dividend of 11.5 cents per share, up 7 per cent.

Experian reported a 2 per cent rise in first-half pretax profit to $573m.

Revenue from continuing businesses rose 6 per cent.