Telecommunications, internet and marketing information services company Neustar has entered a definitive agreement to be acquired by Golden Gate Capital, a San Francisco-based private equity firm. The deal is valued at approximately $2.9bn (£2.3bn) – including debt to be refinanced. An affiliate of GIC, a sovereign wealth fund established by the government of Singapore, will also make an investment and become a minority owner of the company.
The transaction is expected to close no later than the third quarter of 2017 – subject to approval by Neustar’s shareholders, regulatory approvals and other customary closing conditions. Under the terms of the agreement, shareholders will receive $33.50 per share in cash – a 45 per cent premium to Neustar’s closing stock price on 11 November.
“We are pleased to have reached this agreement, which will deliver certain and immediate value to our shareholders,” said James Cullen, Neustar’s chairman of the board of directors. “We are confident that today’s announcement represents the best path forward for all of Neustar’s stakeholders.”
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’.
Rishi Chandna, a managing director with Golden Gate Capital, added: “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.
“We look forward to partnering with the Neustar team to achieve its strategic objectives, make the Company’s competitive advantages even more compelling and drive value for all of Neustar’s stakeholders.”