Frequently Asked Questions
Key Questions
Customer Questions
Government Questions
Operations Questions
Privacy and Security Questions
General Questions
Key Questions
Why is Reed Elsevier acquiring ChoicePoint? What are the benefits?
The combination of LexisNexis and ChoicePoint will significantly improve the value and service we provide our customers — not just in our risk business, but across the LexisNexis Group domestically and internationally.
What are the next steps in this acquisition process and how long will it take?
The transaction is subject to the usual closing conditions and regulatory approvals for a transaction of this size. We anticipate the transaction to close later this year.
How will ChoicePoint be combined with LexisNexis?
ChoicePoint will be combined with LexisNexis Risk & Information Analytics Group and be part of the overall LexisNexis Group (LNG) business. Details of the mechanics of the process regarding people, processes, technologies, and locations will be formulated and communicated following completion of the regulatory review period. However, the headquarters and main data processing center of the combined entity will be based in Atlanta, GA, in the current ChoicePoint facilities.
How will the acquisition impact LexisNexis Risk & Information Analytics Group employees?
During the regulatory review period, current leadership and organizational structures will remain in place, and both LexisNexis Risk & Information Analytics Group and ChoicePoint will continue to operate as independent companies completely separate from one another. After the closing, we will review the structure and roles and responsibilities of our combined staff to ensure we have the best talent in place that will serve our customers and deliver on our strategic goals.
How will the acquisition impact ChoicePoint?
During the regulatory review period, ChoicePoint will continue to function as an independent company completely separate from LexisNexis Risk & Information Analytics Group. ChoicePoint's management will determine how their organization should be structured and operated during this time.
Do you expect to have any position eliminations at LexisNexis and ChoicePoint, and if so, how many people in total?
It is premature to comment on how the combined businesses will be staffed. We expect the acquisition of ChoicePoint will fuel the growth of LNG, and will create opportunities for our dedicated and talented employees.
What made ChoicePoint such an attractive target for LexisNexis?
The acquisition of ChoicePoint adds major presence in insurance, and complementary products and new capabilities in screening, authorization and public records, by combining with the LexisNexis Risk & Information Analytics Group, a world leading provider of risk information and analytics. The acquisition will benefit our customers as it will enable us to deliver enhanced and innovative new offerings employing the best of Reed Elsevier's and ChoicePoint's information solutions and technology.
Will ChoicePoint be combined into LexisNexis?
Prior to closing, ChoicePoint's current management structure will remain in place. After the acquisition closes, we will review the two organizations. The significant synergies between LexisNexis Risk & Information Analytics Group and ChoicePoint management in terms of skills and capabilities will be leveraged to create a world class management team commensurate with our market position and strategic goals. Where it makes sense to combine management and corporate functions to achieve operational efficiencies we will do so. We are committed to retaining the best talent both organizations bring to bear and providing our people with compelling career opportunities and continuous learning. The headquarters and main data processing center of the combined entity will be based in Atlanta, GA, in the current ChoicePoint facilities.
Will ChoicePoint's management remain in place?
Prior to closing, ChoicePoint's current management structure will remain in place. After the acquisition closes, we will review the two organizations. The significant synergies between LexisNexis Risk & Information Analytics Group and ChoicePoint management in terms of skills and capabilities will be leveraged to create a world class management team commensurate with our market position and strategic goals. Where it makes sense to combine management and corporate functions to achieve operational efficiencies we will do so. We are committed to retaining the best talent both organizations bring to bear and providing our people with compelling career opportunities and continuous learning.
Will this deal impact the employee count at ChoicePoint? LexisNexis?
There will be synergies that will occur between LexisNexis Risk & Information Analytics Group and ChoicePoint functions/employees. Any position eliminations will take into consideration all employees' skills sets and contributions to ensure a fair and equitable process for both LexisNexis Risk & Information Analytics Group and ChoicePoint employees.
Where are the majority of ChoicePoint's employees located?
The majority of ChoicePoint's employees are based in ChoicePoint's headquarters in Atlanta, GA. ChoicePoint has approximately 60 office locations throughout North America, Canada and the United Kingdom.
What are the synergies to be realized by this deal?
There will be synergies across all areas of the business. In particular, we expect significant synergies in technology products, services, content and analytics.
Customer Questions
What will change for LexisNexis customers? ChoicePoint customers?
If you are either a LexisNexis or ChoicePoint customer, your current account, solutions and services will remain in place and be fully supported by your current LexisNexis or ChoicePoint team.
The most significant changes will be in the long term enhanced value the combined company will be able to bring to its clients. By combining forces with ChoicePoint, LexisNexis will be better positioned to deliver a broader range of innovative risk-based solutions to its customers utilizing its proprietary technology platform, highest quality data, and advanced analytics.
How does this acquisition benefit clients of both firms?
The acquisition will benefit our customers by enabling us to deliver enhanced and innovative new offerings employing the best of Reed Elsevier's and ChoicePoint's technology accessing the best of FCRA and non-FCRA databases.
What does this mean for current contracts/pending contracts/closed contracts?
While the acquisition is pending LexisNexis and ChoicePoint will continue to conduct business as separate companies as they do today.
Government Questions
Do you expect the Federal Trade Commission or Department of Justice to approve the acquisition?
We feel strongly that the acquisition will benefit the industry as a whole, as it delivers enhanced and innovative new offerings employing the best of Reed Elsevier's and ChoicePoint's technology and databases, and each of LexisNexis' and ChoicePoint's, stakeholders, customers, and consumers. As such, we expect to receive regulatory clearance. We cannot further comment during the regulatory review period.
What types of legislation allow you to collect data?
We comply with all legislation that governs the collection and handling of data.
LexisNexis diligently complies with statutes such as the Driver's Privacy Protection Act (federal and state) and the Gramm-Leach-Bliley Act that regulate some of the personally identifiable information distributed on the LexisNexis services.
Do you expect that Congress will want to investigate the effect on competition this acquisition will have on the RIA marketplace?
We will not speculate on what Congress may or may not do. However, we are happy to answer any questions Members of Congress may have and we are planning on meeting with them as appropriate.
Operations Questions
Will there be any position eliminations at ChoicePoint and LexisNexis at the ChoicePoint facility in Atlanta, Georgia?
It’s premature to answer this. After the transaction closes, we will explore how to most efficiently combine the two organizations.
Will any of the existing facilities currently maintained by LexisNexis or ChoicePoint be closed as a result of the acquisition?
It’s premature to answer this. No office locations will be consolidated in connection to the transaction, prior to closing the transaction. Any decisions on consolidating office locations will be considered and reviewed after the acquisition has closed.
Are there any products or services that will be eliminated as a result of the proposed acquisition?
We will integrate product offerings across the business to provide even more differentiated and valuable offerings to our customers.
Privacy and Security
How do ChoicePoint and LexisNexis protect Privacy?
LexisNexis and ChoicePoint are committed to protecting privacy and maintaining the security of the information in their databases. Both use industry-standard access control software and methods that include vulnerability analysis, rigorous intrusion detection systems and regular penetration testing. LexisNexis is one of the most secure and largest processors of private and confidential data in the world – it has a 35-year track record of handling extremely confidential data for lawyers, financial institutions, regulators, and law enforcement.
What policies do you have in place to protect data?
LexisNexis and ChoicePoint are committed to protecting privacy and maintaining the security of the information in their databases. Both use industry-standard access control software and methods that include vulnerability analysis, rigorous intrusion detection systems and regular penetration testing. LexisNexis is one of the most secure and largest processors of private and confidential data in the world – it has a 35 year track record of handling extremely confidential data for lawyers, financial institutions, regulators, and law enforcement.
What policies and procedures do you have in place to protect this sensitive information from unauthorized access?
Both companies already possess and use much of the same kinds of data, which is often widely available through public sources, so we don't foresee an additional security risk here.
LexisNexis has robust, multi-layered systems in place to protect our data. We use industry-standard access control software and methods that include vulnerability analysis, rigorous intrusion detection systems and regular penetration testing. We continue to refine these processes as threats evolve. With the acquisition, we will be integrating our security systems with those of ChoicePoint's to ensure that we have the best security systems in place across the company.
How have ChoicePoint and LexisNexis enhanced their security recently?
Since the 2004 security incidents, both LexisNexis and ChoicePoint have implemented additional security processes and procedures to enhance security. Specific measures taken by LexisNexis include:
- Retaining a Chief Security Officer to oversee and coordinate efforts to enhance security processes and procedures;
- Requiring that customer IDs and passwords be different;
- Changing customer passwords security processes to require that passwords for both systems administrators and users be changed at a specified time;
- Suspending customer passwords of system administrators and users that have been inactive for a specified amount of time;
- Suspending customer passwords after a specified number of unsuccessful login attempts and requiring them to contact Customer Support to ensure security and appropriate reactivation; and
- Educating our customers on ways they can increase their security.
Maintaining security is not a static process – it requires continuously evaluating and adjusting our security procedures to address new threats we face every day. We continue to adapt our systems to respond to evolving security threats. We support federal security standards such as those adopted under the Gramm-Leach-Bliley Act Safeguards Rule that require information companies that possess sensitive personal information to maintain adequate security to protect that data. We would welcome any additional suitable regulation.
Is the data you maintain subject to existing laws and regulations?
Statutes such as the Driver’s Privacy Protection Act (federal and state) and the Gramm-Leach-Bliley Act regulate some of the personally identifiable information distributed on the LexisNexis services. LexisNexis diligently complies with the requirements of these laws.
How does LexisNexis protect its information?
LexisNexis has strong systems security intended to ensure the availability, confidentiality and integrity of data. We have multi-layered systems for IT and physical security. We use industry-standard access control software and methods that include vulnerability analysis, rigorous intrusion detection systems and regular penetration testing. Our information and system security professionals continuously refine these processes as threats evolve.
LexisNexis products and services are used for a wide-range of beneficial purposes including detecting and preventing ID theft and fraud, locating abducted children, assisting in the collection of child support, locating criminals, witnesses and parties to lawsuits and for other important purposes. LexisNexis is committed to protecting the privacy and maintaining the security of the information in our databases. This is a responsibility that the company takes very seriously. We have strict privacy policies that help ensure that this data will not be misused. We also have multi-layered security processes and procedures to protect our systems and the information contained in our databases.
General Questions
What is the relationship between Reed Elsevier, LexisNexis, and LexisNexis Risk & Information Analytics Group?
Reed Elsevier Group plc is a world leading publisher and information provider for professional users. The company delivers authoritative content through leading brands and proprietary content to provide innovative solutions that become embedded in customers’ workflows. Its three global operating divisions - Science & Medical, Legal and Business - produce more than 15,000 different magazines, books, CD ROMs and internet based data and information services.
LexisNexis®, a division of Reed Elsevier Inc., is a leading global provider of technology focused information-based solutions to professional markets, including: legal, risk and information analytics, corporate compliance, government, law enforcement, tax, accounting and academic. LexisNexis provides customers access to 5 billion searchable documents from more than 40,000 legal, news and business sources. LexisNexis offers proprietary content and technology focused information-based solutions to address specific customer and market requirements by improving workflow productivity. Its information based solutions help clients make business decisions with greater speed and confidence.
LexisNexis® Risk & Information Analytics Group is a leading provider of actionable intelligence to help clients make critical business decisions. It serves the Risk & Information Analytics industry, which includes professionals and organizations such as law enforcement, government agencies, financial services firms, collection agencies, insurance and health care providers, hiring managers and collection agencies. It is a natural extension of the core competencies and technologies proven in the LexisNexis online products from the past 30 years. The LexisNexis Risk & Information Analytics Group builds on the LexisNexis tradition as a trusted provider and custodian of quality information. It utilizes unique data and advanced scoring analytics, coupled with advanced linking technology, to help clients:
- Combat identity theft;
- Verify identity;
- Manage liabilities related to acquiring and retaining customers, business associates and hiring new talent;
- Detect and mitigate fraud;
- Find new customers across industries;
- Help increase operational efficiencies; and
- Shorten collections life cycles
Its website is: http://risk.lexisnexis.com
Who is ChoicePoint?
Since 1997, ChoicePoint Inc. (NYSE: CPS), based outside Atlanta, has been a leading provider of decision-making technology and information that helps reduce fraud and mitigate risk. ChoicePoint has grown from one of the nation's premier source of data to the insurance industry into a premier provider of decision-making insight to businesses and government. Through the identification, retrieval, storage, analysis and delivery of data, ChoicePoint serves the informational needs of businesses of all sizes, non profit and charitable organizations as well as federal, state and local government agencies. ChoicePoint helps their clients to reduce fraud and mitigate risk, particularly in underwriting personal and commercial P&C insurance, and screening and authenticating professionals, customers, and new and existing employees. ChoicePoint is also a leading provider of online due diligence and identification services. It facilitates smarter decisions and makes society safer, while protecting consumer privacy. ChoicePoint had revenues of $982,000,000 in 2007 and employs about 5,500 people in nearly 60 locations.
Its website is http://www.ChoicePoint.com.
What is the RIA Industry?
The Risk & Information Analytics (RIA) industry is a $15 billion industry comprised of multiple solution providers that offer data-based products and services to the financial, insurance, screening and authentication, and government sectors. The industry provides information, technology and tools to prevent identity theft; locate criminals, witnesses and other parties to legal actions; vet volunteers to charitable agencies; locate missing children; allow consumers to secure the best rates for P&C insurance, obtain mortgages, credit cards, and other credit; demonstrate and verify employability; as well as other benefits to consumers, society, and commercial interests.