American data analytics giant Equifax appears set to swallow Veda Group after the Australian credit information provider's board unanimously backed its $2.4 billion takeover offer.
Veda's board is urging shareholders to accept the Equifax's offer of $2.825 per share after entering into a binding agreement with Equifax.
The agreement was struck after Veda allowed the Atlanta-based firm to carry out due diligence on its business in October.
Veda's chair Dr Helen Nugent said the offer was at a significant premium to the group's share price and represents an attractive outcome for shareholders.
"We consider that the offer price of $2.825 cash per share reflects Veda's strong market position and its ability to deliver growth into the future," she said.
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Equifax chairman and chief executive Richard Smith said the acquisition would allow it to expand its global business into Australia and New Zealand.
"This acquisition will provide a strong platform for Equifax to offer new data and analytics services in Australia and other markets in this region, using our technology and expertise developed over many years in the US and the 18 other geographies in which we operate," he said.
Veda has information on 20 million people and more than five million businesses in Australia and New Zealand.
Clients used the information to assess credit risk, carry out background checks and reduce fraud and identity theft.
By comparison, Equifax holds data on more than 600 million consumers and 81 million businesses around the world.
The binding agreement between the two companies is subject to shareholder and regulatory approvals in Australia, however Equifax anticipates the acquisition to be completed by the first quarter of 2016.
Veda's shares closed six cents higher at $2.75.
