D&B Partners with Informatica - Analyst Blog

Provider of business information, Dun & Bradstreet Corp. (DNB) announced its partnership with Informatica Corp. (INFA), the premier provider of data integration software. The partnership is formed with the intent to offer a new technology.

Informatica Cloud will enable cloud-based, on-demand access to D&B via the latter's recently introduced data-as-a-service solution, entitled D&B360. The solution reduces data quality challenges and improves productivity through its on-demand access to users.

We expect D&B to benefit from the partnership, going forward. D&B's key differentiating characteristics are its database management and credit information products' marketing capabilities in domestic as well as international markets.

Informatica Cloud will provide the back-end integration platform for D&B360, providing critical data integration, data synchronization and data quality as an on-demand service, according to management.

Users will benefit from automatically updated insights via integration and synchronization capabilities provided by Informatica from D&B's database.

Informatica Cloud will support the on-demand model fundamental to data-as-a-service, and provide the performance and scalability required to keep users adequately posted, the company pointed out.

We feel that D&B will continue to gain from the inclusion of value-added products in its mix, as customers express greater interest in buying such offerings to improve their own businesses.

D&B's third quarter 2010 earnings beat the Zacks Consensus Estimate. D&B also affirmed its 2010 guidance. The growth was primarily driven by the strength in emerging markets and a robust demand for the company s products and service.

We remain encouraged by D&B's growth strategy through its high margin business model, international growth potential, focus on core business, emerging market growth, profitability improvement measures, strategic investments, incremental cost savings, new product pipeline and impressive cash flow, which conjointly position it for long-term growth.

However, we remain cautious about the actual benefit extended by ongoing economic developments to the top line.

Additionally, integration related risks, foreign exchange headwinds and high debts are areas of concern.

We therefore maintain a Neutral recommendation on D&B for the long term.

Currently, D&B has a Zacks #3 Rank, which implies a short-term Hold rating (for the next 1-3 months), given there is no directional move in Zacks Consensus Estimates for the upcoming quarter or fiscal 2010.

 
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