Experian acquires Brazilian cybersecurity firm ClearSale for $350 million to expand its footprint in Latin America

Experian has acquired Brazilian cybersecurity firm ClearSale in a $350 million deal, in a move to boost its presence in Latin America’s largest economy.

In a statement on Friday, Experian CEO Brian Cassin emphasized that the addition of ClearSale’s expertise in transaction fraud detection will further enhance Experian’s ID&F offerings. Cassin also highlighted Brazil as a high-growth market and a key part of Experian’s global strategy.

Experian, which already holds a leading position in Brazil through its subsidiary Serasa, aims to strengthen its identity and fraud (ID&F) operations with this acquisition. The company believes ClearSale’s services will complement its existing capabilities in fraud prevention, particularly in account openings and takeovers.

The deal values ClearSale at 10.56 reais per share, representing a 23.5% premium over its October 3 closing price. ClearSale, which went public on the São Paulo stock exchange in 2021, has seen its shares drop nearly 70% since its IPO.

ClearSale currently serves 7,400 clients and generated 504 million reais ($91.72 million) in net revenue last year. The company described the acquisition as a validation of its efforts and believes it will benefit both its clients and Serasa’s by providing more comprehensive fraud detection solutions.

Six years ago, Experian acquired the two-year-old fintech startup ClearScore for $383.8 million as part of its effort to expand its reach in the UK and international markets while appealing to millennials drawn to ClearScore’s free credit report offering.

Experian will fund the acquisition with a mix of existing cash and Brazilian Depositary Receipts. The deal is expected to be finalized in the first half of 2025, pending regulatory approval, and could generate 490 million reais in additional revenue and 130 million reais in earnings in its first full fiscal year, Reuters reported.