To better manage workforce management complexities, data and analytics provider Equifax (EFX) announced that it has signed a deal to acquire Health e(fx). The deal is expected to close in the third quarter of 2021.
Health e(fx) enables companies to make strategic decisions regarding healthcare compliance and reporting, benefits, and workforce management. It helps minimize risks and cost, remove the burden on human resources teams and provide strategic insights into benefits decisions.
The financial terms of the deal have not been disclosed so far. Post the acquisition, Health e(fx) will become a part of the Workforce Solutions business unit at Equifax. (See Equifax stock charts on TipRanks)
The CEO of Equifax, Mark W. Begor, said, “With our cloud-native technology architecture, it’s easier than ever to integrate new partner capabilities and acquisitions quickly and securely to create leading-edge solutions. Our strong performance and balance sheet allow Equifax to reinvest our cash flow in this accretive and strategic acquisition that gives customers unique access to more capabilities, product suites, and services under a single roof.”
The Senior Vice-President at Equifax Workforce Solutions, Walter Gibson, III, said, “The Health e(fx) team, relationships and cloud-native technologies are complementary to our business and existing ACA product and will provide us with additional opportunities to help meet evolving employer needs.”
Last month, Needham analyst Kyle Peterson reiterated a Buy rating on the stock with a price target of $288 (13.5% upside potential). The analyst is of the opinion that the company’s Workforce Solutions segment helps differentiate Equifax from its two peers.
Peterson added, “We believe that the company’s differentiated data and accelerating organic growth creates a favorable investment opportunity for investors looking for exposure to financial data.”
The stock has a Hold consensus based on 2 Buys, 5 Holds and 1 Sell. The average Equifax price target stands at $261 and implies 2.8% upside potential.
TipRanks data shows that financial blogger opinions are 100% Bullish on EFX, compared to the sector average of 69%.
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