Mergers & Acquisitions

Mergers & Acquisitions

October 17, 2011

Neustar Plans to Takeover TARGUSinfo

Neustar, a company specializing in network addressing, routing and policy management, has announced its plans to acquire TARGUSinfo (News - Alert), an independent provider of real-time, on-demand information and analytics services including Caller ID, for approximately $650 million in cash.

This new deal will enable Neustar to hold a strong position in the information services market and also combines 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.

Lisa Hook (News - Alert), president and chief executive officer of Neustar said that this transaction is a significant and logical step in their growth strategy.

“Neustar has long provided communications, media and marketing companies with insights derived from their own data. 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,” Hook added.

In addition, the company expects to increase $0.20 per share, excluding the impact of the amortization of intangibles and financing fees. By closing this deal, 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.

Paul Lalljie, Neustar’s chief financial officer, added, “TARGUSinfo, like Neustar, has delivered recurring and growing revenue with attractive margins over many years. 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.”

Not only this, Neustar can also jump to a strong position to use its databases, patented processes and predictive analytics to provide value-added decision-making support for activities such as media and advertising, e-commerce and risk management for current and new customers.

Jyothi Shanbhag is a contributing editor for TMCnet. To read more of Jyothi's articles, please visit her columnist page.

Edited by Rich Steeves

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