Archer will be a tough competitor for Veda, eventually

Archer Capital, which is taking over the Australian and New Zealand business of Dun & Bradstreet, will be a tougher competitor for the credit reporting industry's market leader Veda, according to Macquarie Securities, but it will need time to update the D&B business.

Archer's Credit Data Solutions will become a partner within D&B's worldwide network, which includes 25 partner organisations. It will have access to D&B's global commercial database.

D&B said in a statement on Friday that the change would give its Australasian operations a greater business-to-business focus, in line with its business profile in other markets.

The introduction of comprehensive credit reporting also gives Archer an opportunity to grow D&B's consumer credit reporting business.

Macquarie issued a note assessing the impact of the deal, saying it expected Archer to revitalise the local D&B business, which has been held back by under-investment.

However, any increase in competitive pressure on Veda would only come in the longer term.

"D&B is a long way behind Veda in terms of comprehensive credit reporting progress and market share," Macquarie said.