TransUnion announced an agreement to acquire Sontiq, Inc. (“Sontiq”) for $638 million in cash, subject to customary purchase price adjustments.

TU intends to finance the acquisition through a combination of debt financing and cash on hand, and have entered into a debt commitment letter which provides for a new secured term loan facility in an aggregate principal amount of up to $640 million. TU expects the acquisition to close in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions and regulatory approvals. For additional information on our acquisition of Sontiq, refer to our Press Release dated October 26, 2021, which is available on our Investor Relations website at https://investors.transunion.com/.

“As online commerce rapidly accelerates, TransUnion has calibrated its business to address consumer and customer challenges relating to identity,” Chris Cartwright, president/CEO of TransUnion, said. “Augmenting our Consumer Interactive business with Sontiq’s identity and cyber protection services will advance our work to enable consumers and businesses to transact with greater certainty.”

In a statement, the pairing of the two organizations focused on the complementary strengths Sontiq brought to the table.  “Sontiq’s focus on identity security complements TransUnion’s digital identity assets and solutions, and the combined company will offer a comprehensive set of omnichannel solutions to make trust possible for consumers and businesses,” the statement read.

“TransUnion is committed to empowering consumers to shape their financial futures. With Sontiq, we will ensure that consumers and businesses have a comprehensive set of tools to protect the financial profile they have built,” TransUnion President of U.S. Markets and Consumer Interactive Steve Chaouki said. “We will make these identity protection tools accessible to consumers where they need them by leveraging our strategic partnerships across all of the markets we serve.”

According to the announcement, the Nottingham, Md.-based Sontiq expects to see double-digit revenue growth in the future due to the incorporation into TransUnion.

At the same time TU announced an agreement to sell its Healthcare business for $1.735 billion in cash, subject to customary purchase price adjustments.  The business is being sold to Clearlake Capital Group, L.P. backed nThrive, Inc., a patient-to-payment healthcare solutions provider.

TU intends to use the net proceeds from this sale to prepay debt and for other general corporate purposes as permitted under the Senior Secured Credit Facilities. TU is targeting closing in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions and regulatory approvals. For additional information on the divestment of our Healthcare business, refer to our Press Release dated October 26, 2021, which is available on our Investor Relations website at https://investors.transunion.com/.

Source:  TransUnion Earnings Release

Editorial Comment:  This acquisition comes on the heels of the recently announced US$3bn acquisition of Neustar.  TransUnion appears to boost its services portfolio to ensure that consumers and businesses have a comprehensive set of tools to protect the financial profile they have built!  TRUST!  Accuracy in Identity authentication and protection are essential ingredients of today’s payment and e-Commerce systems.  Congratulations!