Why TransUnion Shares Are Soaring Higher Today

TransUnion TRU shares are trading higher by 4.02% to $63.18 Tuesday morning after the company agreed to sell G2 Web Services, Lundquist Consulting and Fintellix India to an affiliate of Stellex Capital Management for $176M.

What Happened?

TransUnion says the $176 million consideration consists of $104 million of cash and a $72 million note receivable with up to three years in duration. The companies are targeting to close the transaction by the end of the year, subject to the satisfaction of customary and other closing conditions and regulatory approval. We expect to use the net cash proceeds to pre-pay debt.

"Argus is already performing in-line with expectations, with 4% revenue growth in the second and third quarter 2022 along with an Adjusted EBITDA margin in the low-30s excluding integration costs. We have also received strong interest from consortium members to find new ways to utilize Argus' data and insights," said Chris Cartwright, President and CEO of TransUnion.

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"At the same time, several existing TransUnion customers who are not currently consortium members have expressed interest in joining."

According to data from Benzinga Pro, TRU has a 52-week high of $120.36 and a 52-week low of $50.32.