Dun & Bradstreet Update
On April 27th, 2015 Dun & Bradstreet announced that it will be acquiring Dun & Bradstreet Credibility Corporation for $320 million in cash plus an earnout of up to $30 million if certain performance milestones are met through 2018. The transaction has been approved by both boards of directors and is expected to close during May of 2015, pending regulatory approval.
This is big news for the business credit industry. “Dun & Bradstreet has the largest commercial database, and with this combination will add a valuable patent portfolio and technology intended to fuel future product development that serves the needs of companies of all sizes,” said Jeff Stibel, Chairman and CEO, Dun & Bradstreet Credibility Corporation. “By combining two highly successful and complementary teams within one global company, we will create significant value for our customers.”
If you’re not familiar with how the purchase all came about in the first place let’s do a quick recap. Back in 2010 Dun & Bradstreet divested its Self-Awareness Solutions business to Dun & Bradstreet Credibility Corporation and entered into a data license partnership.
Dun & Bradstreet Credibility Corp was created in 2010 to acquire that branch of Dun & Bradstreet’s business that allows companies to monitor their credit. The agreement gave Dun & Bradstreet Credibility Corp the right to market and sell certain products in exchange for royalties paid to Dun & Bradstreet.
Since its formation Dun & Bradstreet Credibility Corp has developed and expanded that business experiencing double-digit growth. This obviously caught the eye of Dun & Bradstreet who made a recent announcement of its new brand purpose, values, tagline and logo.
D&B Focuses on Growth in Business
Acquiring DBCC is another key part of Dun & Bradstreet’s overall growth strategy. “We have great momentum as we bring our strategy to life. Every step we have taken, and will take as we continue to move forward, will help fuel our vision of sustainable growth” says Bob Carrigan, CEO & president of Dun & Bradstreet.
As a result of Dun & Bradstreet purchasing DBCC, a new division called Dun & Bradstreet Emerging Businesses will be formed, which is a combination of Dun & Bradstreet’s small and mid-sized business assets with Dun & Bradstreet Credibility Corporation’s technology and data solutions.
The new division will create a powerful team representing Dun & Bradstreet in the marketplace and will leverage Dun & Bradstreet Credibility Corporation’s proven track record and arsenal of products to serve the needs of its business customers.
You may know Dun & Bradstreet Credibility Corp for its services such as DUNSFile™, D&B, CreditBuilder™ and CreditSignal®. Dun & Bradstreet is more known for its data and it can boast having the world’s largest commercial database, with over 240 million company records. It offers solutions for risk & finance such as business credit reports and a wide range of other solutions.
Quick Facts about Dun & Bradstreet
- World’s largest commercial database, with over 240 million company records
- 90% of the Fortune 500 work with Dun & Bradstreet
- New tagline is “Growing relationships through data.”
- U.S. Federal Government has relied on Dun & Bradstreet, the DUNS® Number and critical data and insights for 20+ years
- Uses 30,000 data sources and updates 5 million times per day
If this deal closes Dun & Bradstreet will be in a position to leverage the strength of DBCC’s management team and business model to maximize its existing product lines and develop new products and services. It will be interesting to see the way Dun & Bradstreet uses this acquisition and new division to expand its market share and deliver more innovative business solutions.
Josh Peirez, Chief Operating Officer of Dun & Bradstreet says “The combination of our teams to create Dun & Bradstreet Emerging Businesses creates tremendous opportunity for our employees to deliver innovative products and services to the almost 28 million small and mid-size businesses in the U.S. and support the company’s ongoing global growth efforts.”
Click here to read Dun & Bradstreet’s press release
Until next time…
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.