GIC, Golden Gate to acquire US IT company for $2.9bn

The sale, expected to be close in the third quarter of 2017, will enable Neustar to strengthen its market position in marketing, security and communications solutions.

A consortium of investors led by San Francisco-based private equity firm Golden Gate Capital  and which includes Singapore sovereign wealth fund GIC Private Limited have agreed to acquire Virginia headquartered IT company Neustar. The deal is valued at about $2.9 billion including debt, according to a company statement.

The investors will pay $33.50 per share in cash, representing a premium of 45 percent to Neustar’s closing stock price on 11 November, the day before Golden Gate disclosed it had owned 2.43 million shares of the data analytics company as of 30 September.

GIC and the rest of the investors did not disclose their respective shareholding in Neustar.

Neustar is a NYSE-listed telecommunications, internet and marketing information services company. Since 2011, Neustar is said to have been executing against a multi-year strategic plan to leverage the company’s position in order and inventory management and real-time numbering services.

Earlier this year, the company announced it would split into two publicly traded companies, separating its portability business from its information management and data marketing businesses.

Rishi Chandna, a managing director with Golden Gate Capital, said: “We strongly believe in the company’s strategic direction and have been very impressed with the team’s ability to transform the business into both a trusted, neutral provider to the telecom industry and a leading information services provider.

The transaction is anticipated to close in the third quarter of 2017.

Golden Gate Capital, which has $15 billion of committed capital, is currently in the market with its latest buyout fund which is targeting $3.5 billion, according to PEI data. 

GIC, with assets under management over $100 billion, recently invested $265 million in Jakarta-based cinema operator PT Nusantara Sejahtera Raya (NSR).