The credit bureau Equifax Inc. has agreed to acquire Talx Corp., an employment verification and human resources company, for $1.4 billion in cash and stock.
Equifax, of Atlanta, said it made the deal to gain new data sources and expand into new markets. Talx, of St. Louis, maintains a database of 142 million employee records. It also provides employee tax information, pay reporting, and payroll services to 9,000 firms, including 385 Fortune 500 companies.
Richard F. Smith, Equifax's chairman and chief executive, said in a press release issued Wednesday that both companies were "critical enablers in the U.S. economy" in "a high-growth market that depends on unique information solutions."
Talx shareholders would receive 75% Equifax stock and 25% cash. Equifax would assume Talx's debt, which was $191.5 million at the end of 2006. Equifax said it hopes to close the deal in the third quarter.
Last year Equifax and its credit bureau rivals TransUnion LLC and Experian Group Ltd. formed VantageScore Solutions LLC, which sells an alternative to the FICO credit score provided by Fair Isaac Corp.
