UPDATE 2-NeuStar to buy Targus Information for $650 mln
* Q3 earnings tops estimates* To buy additional $250 mln of Class A common shares* NeuStar shares up 3 pct in after-hours tradeBy A. AnanthalakshmiOct 11 (Reuters) - Telecommunications company NeuStar Inc
is to buy privately-held Targus Information Corp, a
provider of caller identification services, for about $650
million in cash to boost its presence in the real-time
information and analytics market.NeuStar, which routes phone calls and text messages in North
America, expects the deal to add at least 20 cents a share to
its 2012 earnings and push annual revenue to about $750 million.Vienna, Virginia-based Targus — which helps identify,
verify and locate callers, and maintains a database — generated
about $149 million in revenue for the twelve months ended Sept.
30.NeuStar, which was spun off from Lockheed Martin Corp
in 1999, also maintains databases that directs
communication via phones and the Internet.”We permit the phone calls to be sent and they (Targus)
enable the people who are picking up the phone to know who is
calling them,” NeuStar CEO Lisa Hook told Reuters in an
interview.Hook said the companies have some customer overlap in the
cable, wireless carrier and advertising industries.When NeuStar began talking to Targus in November 2010, the
target company was not pursuing a sale, Hook said.Last year, Targus had hired Wells Fargo to conduct a sale
process. But it was discontinued and the company decided to
pursue recapitalization.NeuStar expects to fund the deal with a combination of cash
on hand and $600 million in committed financing.Morgan Stanley and Allen & Co were NeuStar’s financial
advisers, while Wells Fargo advised Targus.Separately, NeuStar reported third-quarter earnings of 51
cents a share that beat analysts’ expectations by 7 cents and
guided higher earnings for the year.Revenue rose 18 percent to $152.5 million.The company also said it plans to buy back another $250
million of its Class A common shares on an accelerated basis.Shares of the company, which closed at $28.04 on Tuesday on
the New York Stock Exchange, were up 3 percent in after market
trade at $29.03.
