(Reuters) - U.S. technology services provider Computer Sciences Corp will sell its credit services unit to business information provider Equifax Inc for $1 billion in cash, and record after-tax proceeds of about $750 million to $800 million.
CSC said in May it was looking to sell its "non-core" assets and would cut costs by $1 billion over the next 12 to 18 months.
The company said it intends to use about $300 million to $400 million of the proceeds to buy back shares, and contribute another $300 million to $400 million to its pension plans.
The credit services unit provides financial services and consumer credit information to the automotive industry, banks, retail establishments, mortgage companies, medical entities, and utilities in the United States.
CSC's business solutions and services unit, which includes the credit services business, contributed 23 percent to its total revenue in 2012.
The company said the deal is expected to close this month.
CSC had been losing money over renegotiating a multibillion-dollar contract with Britain's National Health Service.
It was also looking to change its management to turn the business around.
The company hired Paul Saleh from Gannett Co as chief financial officer earlier this year.
CSC, currently valued at about $5.91 billion, said the sale of its credit services unit would help it focus on its technology solutions and services business.
The company's shares closed at $38.06 on the New York Stock Exchange on Friday. Equifax shares closed at $51.24.
(Reporting by Chandni Doulatramani in Bangalore; Editing by Anil D'Silva and Don Sebastian)
Source: http://news.yahoo.com/csc-sell-credit-services-unit-equifax-1-billion-131910967--sector.html
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