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TransUnion To Acquire Neustar For $3.1B

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  • TransUnion (NYSE: TRU) has agreed to acquire Neustar, a premier identity resolution company with solutions in Marketing, Fraud, and Communications, from a group led by Golden Gate Capital and with minority participation by Singapore-based GIC, for $3.1 billion in cash.

  • For FY21, Reston, Virginia-based Neustar is expected to generate ~$575 million of revenue and $115 million of Adjusted EBITDA.

  • After integrating Neustar, TransUnion expects Neustar to accelerate growth through material revenue synergies and increased participation in the digital marketing and identity fraud marketplaces. 

  • The company anticipates material cost synergies from the combined companies and expects the deal to be accretive to Adjusted EPS beginning in 2023.

  • Neustar's security business is excluded from the transaction and will become a Golden Gate Capital and GIC portfolio company.

  • TransUnion held cash and cash equivalents of 6 million on June 30, 2021.

  • The transaction is expected to close in 4Q21.

  • Price Action: TRU shares closed lower by 0.77% at $123.23 on Friday.

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