US-based credit reporting firm TransUnion has signed an agreement for the $3.1 billion acquisition of identity resolution company Neustar.
Virginia-based Neustar offers data solutions which it says can seamlessly connect people and businesses. It has 8,000 clients across the world.
TransUnion believes its acquisition will enable accelerated growth in both “material revenue synergies” and “increased participation in the fast-growing identity fraud marketplace”.
The firm is aiming to diversify its offerings and branch away from its core credit solutions. Neustar’s OneID platform will be integrated into TransUnion’s TLO data assets system.
Neustar projected $575 million of revenue for 2021, and $115 million of adjusted EBITDA. TransUnion says it expects to see material returns on its deal by 2023.
“TransUnion and Neustar share a similar strategic vision, culture and focus on building innovative identity-based solutions,” says 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.”
The deal does not include Neustar Security Solutions, which will remain under the ownership of the firm’s backers Golden Gate Capital and GIC.
The transaction is expected to close in Q4 2021 subject to regulatory approvals.