Neustar (NYSE: NSR) is enhancing its policy control portfolio with a new set of on-demand information and analytics services including Caller ID, thanks to its acquisition of TARGUSinfo.
By acquiring TARGUSinfo, Neustar officials said it will have a stronger position in the $30 billion information services market by combining TARGUSinfo's 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.
When Neustar completes the $650 million all-cash deal in Q4 2011, it expects to 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.
Processing over 100 billion transactions per year, the company reported about $149 million in revenues for the 12 months ended Sept. 30, 2011, representing 20 percent year-over-year growth.
Interestingly, Lisa Hook, Neustar's CEO, said in a blog post that the genesis of the two companies merging together came during a dinner she had with TARGUSinfo founder George Moore.
"Neustar's acquisition of TARGUSinfo wasn't the result of an investment banker bringing one of us the idea," she wrote. "Our combination stems from a meal I had the pleasure of sharing last year with George Moore, who founded and built TARGUSinfo into the formidable company it is today."
"Over dinner, George and I both became excited about the possibilities of what our two companies could do together," she said. "Since then, our senior teams have grown equally excited about how, by bringing these complementary companies together, we can broaden the scope of the services we offer to a larger and more diversified customer base."
This is the second major deal that Hook has made since she became CEO of the company last November, taking over from founder Jeff Ganek as part of a realignment of the company's management team. Earlier this year, Neustar purchased the Numbering Solutions business from Evolving Systems (NASDAQ:EVOL) for $39 million in cash.
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