CSC to sell credit services unit for $1B to Equifax As part of its transformation initiative to rebalance its portfolio of services and focus on next-generation technology solutions and services, CSC (CSC) has reached a definitive agreement with Equifax (EFX) for the sale of its credit services unit for $1B in cash. The after-tax proceeds from the sale of the business will be approximately $750 - $800 million based on preliminary plans. CSC intends to use $300M-$400M to repurchase shares, contribute $300M-$400M to its pension plans and apply the remainder to general corporate purposes. The companies anticipate closing of the transaction by the end of the calendar year after concluding regulatory reviews. This deal marks CSC’s second divestiture in six weeks.
Equifax weakness creates buying opportunity, says SunTrust SunTrust raised its estimates for Equifax as the firm is more confident in the company's business momentum and is particularly more upbeat on the company's Workforce Solutions unit. The firm is pleased by what it sees as the company's innovative new methods of monetizing its data. SunTrust expects the company's margins to rise due to its improving mix. The firm keeps a $125 price target and Buy rating on the shares.