Experian agrees £200m deal for US fraud group

Experian has agreed to buy US fraud detection group The 41^st Parameter in a $324m (£200m) deal.

Experian said it is funding the acquisition through existing cash reserves, and expects the newly acquired group to generate $26m of revenues over the remainder of the year.

 Analysts told City AM that the price was high at 12.5 times expected 2013 sales and Experian’s earnings per share could suffer next year, but that The 41^st Parameter’s sales growth could boost long-term revenues.