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NEW YORK (CNNfn) -- The Equifax Insurance Services Group announced an agreement Tuesday to acquire private investigation firm Kroll Associates Inc. for an undisclosed sum.
The news follows last week's announcement that Equifax would be spinning off the Insurance Services Group this summer. The new concern will be known as ChoicePoint.
Equifax said it expects the Kroll deal, which will become part ChoicePoint, to be completed shortly after that spin-off.
The Insurance Services Group is a provider of insurance information regarding risk and fraud. The Alpharetta, Ga.-based company generated $587 million in revenues in 1996.
Kroll, which is headquartered in New York City, is an international investigative and corporate intelligence consulting firm. It employs 300 people in 22 offices worldwide.
The move is part of Equifax's strategy to broaden its services. It currently does little business internationally and it is looking to Kroll, with its extensive overseas contacts, to assist in that area.
Equifax also hopes that its acquisition of Kroll will help with its risk management services. As an investigative firm, Kroll is better suited to identify problems whereas Equifax's strong suit is dealing with those problems after they are known.
"Kroll Associates brings unique expertise in corporate intelligence and risk management consulting services, and a depth of experience in diverse industries and markets that is important to our strategy," said Derek V. Smith, currently Equifax executive vice president and designated president & CEO of ChoicePoint.
Shares of Equifax (EFX) fell 1-1/8 to 27-3/8 in early morning trading on the New York Stock Exchange. Kroll is privately-held.
-- Randy Schultz
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