Experian tumbles after swoop for US health firm

Experian shares tumbled today after the company revealed it plans to buy US software specialist Passport Health Communications for $850 million (£531 million).

The FTSE-100 giant, which is best known in the UK for running credit checks for banks, landlords and retailers, said the takeover would boost revenues in one of its fastest-growing businesses across the pond.

Passport Health Communications operates in the healthcare payments market, which manages medical bills, claims, and payments. However, analysts warned that such a large deal comes with operational risks and Experian’s shares fell more than 7%.

Experian boss Don Robert said: “Since entering the healthcare payments market five years ago, we have steadily expanded our position through both organic investment and acquisition and our business is growing strongly. We are now taking the next step and the acquisition will make us a clear leader in this high-growth and attractive market.”