Accuity is a leading US provider of online subscription-based data solutions for the financial services industry which enable customers to maximise the accuracy of their banking and payment transactions, and to minimise the risk of non-compliance with government regulations in these transactions. Accuity is a highly complementary business with both Reed Elsevier’s Bankers’ Almanac and the financial services business of LexisNexis Risk Solutions.
Accuity operates in three principal segments:
• Payment Efficiency: provision of bank routing data files, filters, directories and look-up tools which enable financial institutions and corporates to execute transactions globally, increasing straight-through-processing rates, and reducing errors and costs;
• Risk Reduction: provision of data and software solutions that enable financial institutions and corporates to screen against sanctioned and high risk entities and people through customer filtering, account screening and transaction monitoring; and
• National Regulatory Services: provision of workflow, information and consultancy services which help investment institutions remain compliant with regulations.
Accuity is, like Bankers’ Almanac, an online data business with subscription-based revenues, 95%+ customer retention rates and double digit revenue growth. It has offices across the US and in the UK, and provides solutions to the banking financial services, corporate and government communities with over 14,000 clients, including most of the world’s leading financial institutions and all of the top 25 US banks. Accuity has over 300 staff and is based in Skokie, Illinois, United States.
Reed Elsevier, through Reed Business Information’s Bankers’ Almanac, is recognised as a leading provider of banking intelligence and online banking data to financial services sector customers predominantly outside the US. Additionally, Reed Elsevier’s LexisNexis Risk Solutions business is a leading provider of risk reduction and compliance services through its anti-money laundering (AML) and fraud prevention data and solutions.
Accuity will be integrated with Bankers’ Almanac and will share the combined data assets with LexisNexis Risk Solutions. The CEO of Accuity is joining Reed Elsevier to run the enlarged business within the data businesses of Reed Business Information.
The acquisition will be accretive to Reed Elsevier’s adjusted earnings from the outset, with post tax returns expected to cover its weighted average cost of capital by the third year. The transaction is subject to customary conditions and regulatory consents and is expected to close in the fourth quarter.
Reed Business Information CEO Mark Kelsey said: “Bankers’ Almanac and Accuity are both strong brands with highly complementary products and strengths and excellent geographic fit. The combination of the two companies will enable us to offer customers much more comprehensive products and services to meet their developing needs.”
James M. Peck, CEO of LexisNexis Risk Solutions said: “Accuity is a business with prestigious content, in an attractive space with strong fundamental growth characteristics. The combination will provide our customers with expanded resources to contribute further to managing their AML and Know Your Customer (KYC) requirements.”
Hugh Jones, president and CEO of Accuity, said: "By combining the assets of Accuity and Bankers’ Almanac and LexisNexis Risk Solutions, we will be able to provide new solutions to our customers that are unprecedented. Our current and prospective customers will have access to the premier banking information repository in both breadth and depth, and this combination will enhance their businesses significantly."
