Friday 06 July 2018 12:47 pm

Experian to acquire London fintech startup Clearscore in £275m deal

Experian, the world’s biggest credit data company, has bought London-based fintech company Clearscore in a £275m deal.

The credit checking firm's CEO Brian Cassin said the deal was “another important step in our strategy to extend the services we provide to UK consumers”.

Clearscore launched in July 2015 and now offers over 6m UK customers free credit checks. The company, which generates income from products it sells to customers who get credit checks, said it's on track to make $55m (£39m) in revenue in 2018.

In acquiring the startup, Experian will be hoping to expand its services while also diversifying its customer base, taking on Clearscore’s younger and more engaged clientele as well it’s slick online interface.

In a statement, Cassin said that Experian would “benefit from Clearscore's skill in developing services which are appealing and easy to use".

In addition, Experian, which has made similar acquisitions in the US and Brazil, said the deal would help accelerate its international growth: ClearScore recently expanded to South Africa, and now serves over 300,000 customers. Experian currently operates in 37 different countries.

Clearscore CEO Justin Basini said: “I believe that this acquisition will allow us to grow faster and develop exciting new innovations that will deliver improved financial well-being to you, our current users, in the UK and South Africa, and hopefully millions more around the world.”

The deal is expected to go through later this year, pending approval from the UK's Competition and Markets Authority and the Financial Conduct Authority. If the purchase is approved, it will be one of the UK’s biggest tech exits in years.