Coface's Strategic Acquisition: Strengthening Information Services in the Middle East and Africa

Coface, a global leader in trade credit insurance and risk management, has announced its agreement to acquire Cedar Rose Group, a leading provider of business information solutions in the Middle East and Africa region. This strategic acquisition aligns perfectly with Coface's Power the Core strategic plan, which focuses on data excellence and aims to develop a global ecosystem of reference for credit risk management.

With over 25 years of experience, Cedar Rose has built a vast business network and produced data with recognized quality, even in regions where information is difficult to access. By integrating Cedar Rose's capabilities into Coface's offerings, clients can expect more accurate and reliable information about their commercial partners, enabling them to make better-informed decisions about extending trade credit.

The acquisition will also allow Coface to expand its coverage and provide more comprehensive information services to clients operating in the Middle East and Africa. This is particularly beneficial for multinational clients with subsidiaries across the region, as they will have access to better risk assessment tools and more tailored solutions.

In addition to enhancing data quality and coverage, the acquisition is expected to drive revenue and profit growth for Coface. The Middle East and Africa region has a positive economic growth outlook, which should drive demand for credit insurance and information services. Cedar Rose's established customer base and strong reputation in the region will contribute to Coface's top-line growth, while the acquisition aligns with Coface's strategic plan to achieve a combined ratio of ~78% and a ROATE of 11% through the cycle.

In conclusion, Coface's acquisition of Cedar Rose Group is a strategic move that will enhance the quality and breadth of business information services in the Middle East and Africa region. By integrating Cedar Rose's capabilities, Coface will be better equipped to support its clients' growth and success in the global economy. This acquisition aligns perfectly with Coface's Power the Core strategic plan and is expected to contribute to the company's long-term growth and financial performance.