D&B Announces Acquisition of Dun & Bradstreet Australia Holdings Limited for $205 million; Reconfirms 2010 Guidance
SHORT HILLS, N.J., Aug 31, 2010 (BUSINESS WIRE) -- D&B (NYSE: DNB), the world's leading source of commercial information and insight on businesses, today announced it has acquired a member of the D&B Worldwide Network, privately held Dun & Bradstreet Australia Holdings Limited ("D&B Australia"), the leading credit and information services provider in Australia and New Zealand, for approximately $205 million in cash. The transaction closed today and was financed primarily with existing cash on hand.
"The acquisition of D&B Australia represents a strong fit with our international strategy and allows D&B to participate directly in a geographic region that has increasing importance for our global customers. D&B Australia has tripled in size over the last decade and we expect continued growth in the years ahead," stated Sara Mathew, D&B's Chairman and Chief Executive Officer.
D&B Australia is a trusted leader in commercial risk and receivables management and owns and operates an emerging high growth consumer credit service. Through these three primary units, D&B Australia is able to efficiently collect high quality data on most businesses within Australia and New Zealand.
For its fiscal year ended June 30, 2010, D&B Australia generated approximately $80 million of revenue and operating margins of approximately 20%, in accordance with International Financial Reporting Standards.
For the remainder of 2010, we expect the acquisition of D&B Australia to impact our full-year 2010 financial results, as follows:
Excluding this acquisition, our expectations for our core business are unchanged from our previously communicated 2010 guidance. International is expected to deliver double digit revenue growth and we expect to see sequential revenue growth in North America over the remainder of the year.
As a result, while the acquisition provides modest upside to revenue and dilution to earnings, we remain comfortable with our current guidance ranges:
As a reminder, D&B does not provide guidance on a GAAP basis because D&B is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of non-core gains and charges, such as restructuring charges and legacy tax matters, which are a component of the most comparable financial measures calculated in accordance with GAAP. Non-core gains and charges are uncertain and will depend on several factors, including industry conditions, and could be material to D&B's results computed in accordance with GAAP.
Use of Non-GAAP Financial Measures
D&B reports non-GAAP financial measures in this press release. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - How We Manage Our Business" in the D&B Annual Report on Form 10-K for the year ending December 31, 2009, filed February 25, 2010 with the SEC, for a discussion of how D&B defines these measures, why it uses them and why it believes they provide useful information to investors.
About Dun & Bradstreet(R) (D&B)
Dun & Bradstreet (NYSE:DNB) is the world's leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence(R) for 169 years. D&B's global commercial database contains more than 168 million business records. The database is enhanced by D&B's proprietary DUNSRight(R) Quality Process, which provides our customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions.
D&B provides solution sets that meet a diverse set of customer needs globally. Customers use D&B Risk Management SolutionsTM to mitigate credit and supplier risk, increase cash flow and drive increased profitability; D&B Sales & Marketing SolutionsTM to increase revenue from new and existing customers; and D&B Internet SolutionsTM to convert prospects into clients faster by enabling business professionals to research companies, executives and industries, over the web. For more information, please visit www.dnb.com.
Forward-Looking and Cautionary Statements
This press release, contains projections of future results and other forward-looking statements that involve a number of trends, risks and uncertainties, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The following important factors could cause actual results to differ materially from those projected in such forward-looking statements.
For a more detailed discussion of the trends, risks and uncertainties that may affect D&B's operating and financial results and its ability to achieve the financial objectives discussed in this press release, readers should review the Company's most recent filings with the SEC, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are available on its Web site at www.dnb.com and on the SEC's Web site at www.sec.gov. D&B cautions that the foregoing list of important factors is not complete and except as otherwise required by federal securities laws does not undertake any obligation to update any forward-looking statements.
Ana Cano, 212-367-6920 (Media)
Kathy Guinnessey, 973-921-5892 (Investors/Analysts)
Copyright Business Wire 2010