After years of building a diversified company, Equifax Inc. is now steadily chipping away at the blocks that are not related to its financial services.
This week Atlanta-based Equifax announced plans to spin off its insurance information services group, which is nearly as old as the 97- year-old company and contributes about a third of its revenues.
The split is subject to an Internal Revenue Service ruling that would let Equifax shareholders become owners of the new company without owing taxes on their new shares.
The separation would free Equifax's financial services group, which provides credit reporting, payment processing, and risk management services, to expand globally and pour more capital into developing new products.
A campaign to penetrate international markets is under way, spearheaded by Thomas F. Chapman, executive vice president of Equifax, who headed the financial services group. Mr. Chapman would become president and chief operating officer of the new Equifax when the spinoff is completed.
Financial services is the largest and fastest-growing part of Equifax, but it has always had to compete with the insurance business for capital.
The insurance business, which provides underwriters of life, health, and property-and-casualty policies with risk assessment information as well as employment screening services, would be headed Derek V. Smith, now executive vice president of the business.
"There was no more synergy or anything corporate holding the two businesses together," said Equifax spokesman Norman Black.
Equifax is similarly divesting its health care information business, started just three years ago. One aim of the spinoff plans is to raise the price of Equifax's stock, which the company says is undervalued.
