Transunion Agrees to Acquire Neustar for $3.1 Billion in Cash

According to a Wall Street Journal story over the weekend and confirmed today, TransUnion has agreed to acquire Neustar for $3.1 billion in cash. The company is currently owned by an investment group led by Golden Gate Capital that took the company private in 2017 in a deal valued at $2.9 billion. The deal is expected to close in the 4th quarter of this year. 

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

Neustar is expected to generate approximately $575 million of revenue and $115 million of Adjusted EBITDA in 2021. After integrating Neustar, TransUnion expects to accelerate growth through both material revenue synergies and increased participation in the fast-growing digital marketing and identity fraud marketplaces. 

“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.

The acquisition advances TransUnion’s strategy to diversify from its core credit solutions with complementary digital marketing and fraud mitigation capabilities. Neustar’s OneID platform will help to 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, among others.

“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,” said Charlie Gottdiener, President and CEO of Neustar. “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.”

The combined company expects to be well-positioned to solve customer and consumer challenges related to identity, leveraging:

• A powerhouse set of future-forward marketing solutions underpinned by a comprehensive and scaled understanding of identity
• Enhanced fraud detection and prevention capabilities, using advanced data analytics and online identity behavior insights, to safeguard transactions across a wide range of channels and deliver superior consumer experiences
• Scaled Communications vertical to serve evolving customer needs

TransUnion hosted a conference call this morning to discuss the transaction agreement and certain forward-looking information. A replay of this session and the accompanying presentation materials may be accessed at www.transunion.com/tru.

insideARM Perspective

Neustar's OneID platform is key to the value of this transaction to TransUnion. One of the primary challenges for the ARM industry is to overcome the awkward process of authenticating the identity of the consumer (in order to comply with the privacy requirements of the FDCPA) and also the identity of the organization (in order to increase consumer trust in the contact channel). As more and more communications take place digitally, it will benefit all parties if platforms like this can help to establish trust and reduce the friction caused by this uncomfortable dance.