TransUnion said it has agreed to buy information-services company Neustar Inc. for $3.1 billion in cash, a move that sets the consumer-credit reporting giant to diversify beyond its core business and put data to new uses.
The Chicago-based company Monday said it is buying Neustar from a private investment group led by Golden Gate Capital and with minority participation by GIC. The Wall Street Journal reported Sunday evening that TransUnion and Neustar were nearing a deal.
TransUnion said it expects cost savings from the combined entity and sees the transaction adding to its adjusted earnings per share starting 2023.
Reston, Va.-based Neustar uses analytics and modeling to help businesses identify potential customers and determine which ads to serve them. It also provides cybersecurity services. Neustar is expected to make about $575 million in revenue and $115 million in adjusted earnings before interest, taxes, depreciation and amortization in 2021, TransUnion said.
The companies expect the deal to close in the fourth quarter.