Regtech

TransUnion Acquires Neustar for US$3.1 Billion to Enhance Digital Identity Capabilities

American consumer credit reporting agency TransUnion has signed a US3.1 billion deal to acquire Neustar, an identity resolution company, from a private investment group led by Golden Gate Capital and with minority participation by GIC.

Neustar’s security business, which is excluded from the transaction, will become a Golden Gate Capital and GIC portfolio company following the close of the transaction.

The acquisition expands TransUnion’s digital identity capabilities through the addition of Neustar’s distinctive data and analytics, enabling consumers and businesses to transact online with greater confidence.

Headquartered in Virginia, Neustar is expected to generate approximately US$575 million of revenue and $115 million of Adjusted EBITDA in 2021.

After integrating Neustar, TransUnion said that it expects to accelerate growth through both material revenue synergies and increased participation in the fast-growing digital marketing and identity fraud marketplaces.

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

Chris Cartwright

“The credit information and analytics that TransUnion provides make trust possible between consumers and businesses.

As digital commerce continues to grow globally, TransUnion’s powerful digital identity assets, enhanced by Neustar’s distinctive data and digital resolution capabilities, will enable safer and more personalized online experiences for consumers and businesses,”

said Chris Cartwright, President and CEO of TransUnion.

Charlie Gottdiener

“TransUnion and Neustar share a similar strategic vision, culture and focus on building innovative identity-based solutions which enable trusted connections between companies and people.

The two companies’ complementary businesses, products and relationships will offer benefits for our combined customers, employees and other stakeholders across a diverse set of markets.”

said Charlie Gottdiener, President and CEO of Neustar.

Featured image: Edited from Canva