Neustar Inc., whose Neustar Media developed and maintains the UltraViolet digital rights locker platform, announced it is acquiring on-demand information and analytics services company Targus Information Corp. for approximately $650 million in cash.
“By combining TARGUSinfo’s leadership 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, we will be able to greatly extend Neustar’s ability to provide its customers services based on unique, non-replicable datasets,” Lisa Hook, president and CEO of Neustar (pictured), wrote on the company’s blog.
Both Neustar and TARGUSinfo manage unique, secure databases that allow companies to find, connect and authenticate customers across the Internet and voice networks, whether fixed-line, cable, or mobile. This acquisition strengthen’s Neustar’s position to leverage its databases, patented processes and predictive analytics for activities such as media and advertising, e-commerce and risk management for current and new customers.
TARGUSinfo processes over 100 billion transactions per year. The company generated approximately $149 million in revenues for the twelve months ended Sept. 30, 2011, representing 20 percent year-over-year growth. Following completion of the transaction, which is funded with a combination of cash on hand and $600 million in committed financing, Neustar will have annual revenues of approximately $750 million generated from a more diversified platform of information and analytics services offered to a wider range of enterprises.
“TARGUSinfo, like Neustar, has delivered recurring and growing revenue with attractive margins over many years,” said Paul Lalljie, Neustar’s chief financial officer (pictured). “By joining forces, we will be able to accelerate our growth, expand our services to customers and diversify our business while maintaining a flexible and efficient capital structure that will support continued growth and the return of capital to shareholders.”
Neustar blog post – http://tinyurl.com/3t9z6tpPhoto courtesy of Neustar: Paul S. Lalljie, senior vice president and chief financial officer, and Lisa A. Hook, president and chief executive officer