D&B Re-Acquires D&B Australia

The Dun & Bradstreet Corporation DNB has re-acquired Dun & Bradstreet Australia operation for $205M, which is divested in 2001 for $24M, JP Morgan reports. Since then, Dun & Bradstreet has tripled revenues due to increased cross-border activity as businesses (minerals, manufacturing, etc.) in Australia/New Zealand have expanded in Asia, according to JP Morgan. For 2H2010, the acquisition should add $15-20M in revenues but dilute EPS by $0.04-0.05 due to merger-related expenses and amortization. JP Morgan has decreased 2010 EPS to $5.17 (from $5.22), $5.53 (from $5.48) for 2011 and $6.60 (from $6.55) in 2012 as IT Project costs fade. JP Morgan remains Neutral and maintains its $73 price target. The Dun & Bradstreet Corporation closed yesterday at $67.00.