TransUnion To Acquire Neustar For $3.1B

TransUnion 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 $526 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.