Neustar, the provider of clearinghouse and directory services to the global communications and Internet industries, on Tuesday announced an agreement to acquire TARGUSinfo, a provider of real-time, on-demand information and analytics services including caller ID.
The $650 million cash deal will combine TARGUSinfo’s expertise in caller ID and online information services such as lead verification and scoring, with Neustar’s strengths in network information services, including address inventory management, network security and marketing analytics, Neustar said.
The merger will transform Neustar into a company with annual revenues of roughly $750 million. For the 12 months ending Sept. 30, the companies posted combined revenues of $732 million and an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 45 percent.
TARGUSinfo’s services help its customers identify, verify, score and locate their customers and prospects. Processing more than 100 billion transactions annually, TARGUSinfo posted about $149 million in revenues for the year ending Sept. 30, with an adjusted EBITDA margin of roughly 45 percent, excluding the impact of certain expenses. Neustar and TARGUSinfo both manage databases that allow companies to find, connect and authenticate customers across Internet and voice networks.
“By combining with TARGUSinfo, we will be able to offer a much more diverse portfolio of services in the real-time information and analytics market," Neustar President and CEO Lisa Hook said in a statement.
Neustar plans to fund the acquisition through cash on hand and $600 million in committed financing, and the company expects the deal to close in the fourth quarter pending approval under federal law.
