Neustar Set to Acquire TARGUSinfo for $650 million

Two DC area headquartered companies, Neustar, Inc. and TARGUSinfo, recently announced a game changing M&A transaction for Neustar. With this deal, Neustar has further vaulted ahead in the data and analytics space associated with its core telecommunications market. TA Associates backed TARGUSInfo has been a tremendously successful pioneer in the On-Demand analytics space, leveraging consumer data in real time based on caller profile and demographics. This deal, robustly priced at 4.33X revenue, is a great strategic step for Neustar to place themselves more definitively into a new, growing and dynamic data and analytics market. More importantly, they have taken this step with a very logical partner that leverages their telecommunications strength and delivers its solutions with a recurring revenue On-Demand model.

We applaud Lisa Hook and her team for having the vision to take this bold step with a very high quality company. We believe that once completed, this M&A transaction will yield substantial benefits to Neustar shareholders and customers. In addition, we think the synergies, both revenue and expense related, will be very realizable particularly given the geographic proximity of the two companies. This deal is further evidence of the robust growth and innovative strategies that are being employed by DC area headquartered companies whose commercial clients extend far beyond the beltway.