TransUnion has signed an agreement to acquire a majority stake in Trans Union de Mexico, the consumer credit business of Buró de Crédit, for $560 million.

The global consumer credit reporting agency currently owns around 26 per cent of Trans Union de Mexico, serves as one of its technology providers, and has held seats on its board of directors for over two decades.

Under the agreement, TransUnion will acquire an additional 68 per cent stake from selling shareholders, taking its stake in the company to 94 per cent.

The company said that the transaction should close by the end of the year subject to regulatory approval. TransUnion said it intends to leverage its global operating model to strengthen Trans Union de Mexico’s services to the Mexican market, including additional efforts to drive financial inclusion.

TransUnion said that Mexico is the 12th largest global economy and second largest in Latin America, with a growing population and emerging middle class. It added that consumer credit in Mexico is rapidly expanding, with over half of Mexican adults having at least one financial product.

While credit penetration remains lower in Mexico than other Latin American countries, TransUnion said the market has grown significantly over the past decade and according to the IMF the market has grown from 34 per cent to 42 per cent of GDP between 2013 and 2023.

The company estimates the deal will generate around $145 million of revenue and $70 million of adjusted EBITDA in the first year.

“Our expansion in Mexico continues our commitment to making trust possible in global commerce,” said Chris Cartwright, president and chief executive of TransUnion. “Credit bureaus are a catalyst for financial inclusion, and we are excited for the opportunity to bring the benefits of our state-of-the art technology, innovative solutions and industry expertise to Mexican consumers and businesses.”

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