Credit rating giant TransUnion announced a deal to acquire Neustar, an identity resolution company — which tracks and aggregates consumers’ digital activity for marketing and anti-fraud applications — for $3.1 billion in cash.
The deal is expected to close in the fourth quarter of 2021, subject to customary closing conditions and regulatory approvals. TransUnion is buying Neustar from a private investment group led by Golden Gate Capital and with the participation of GIC.
TransUnion expects Neustar’s OneID platform to help unify the digital identity capability TransUnion has built and acquired in recent years, including the TLO data assets and fusion platform, the Iovation device-reputation network, and the digital marketing capabilities of Tru Optik.
TransUnion’s deal will not include Neustar Security Solutions. Following the sale of the Neustar marketing, risk and communications businesses to TransUnion, Golden Gate Capital and GIC will retain ownership of Neustar Security Solutions, which has about 235 employees.
For 2021, Reston, Va.-based Neustar is projected to generate $575 million of revenue and $115 million of adjusted EBITDA. TransUnion anticipates “material cost synergies” through the Neustar acquisition and expects the transaction to be accretive to adjusted earnings beginning in 2023.
“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,” TransUnion president/CEO Chris Cartwright said in announcing the deal.
Charlie Gottdiener, president/CEO of Neustar, added, “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.”