TransUnion, an American consumer credit reporting agency also involved in fraud detection, marketing, and analytical services, plans to sell its healthcare section to NThrive for $1.74 billion.
On Tuesday, October 26, the company announced that it had completed an agreement to sell TransUnion Healthcare to NThrive, a healthcare revenue cycle management SaaS solutions company backed by Clearlake Capital Group.
Proceeds from the TransUnion Healthcare Sale
The $1.735 billion cash transaction has been slated to be completed in the last quarter of this year, with TransUnion expected to get $1.4 billion in after-tax proceeds from the sale. The proceeds will help TransUnion prepay debt and fund future acquisitions that will help the company scale up.
In a statement released by TransUnion in regards to the sale, Chris Cartwright, the CEO of the company, said the sale will help the company focus more on its vision as a global information and insights company.
"With the divestiture of TransUnion Healthcare, TransUnion will bring greater focus to our position as a global information and insights company providing credit, marketing, and fraud mitigation solutions to help businesses and consumers transact with greater certainty," the CEO said.
Clearlake's Stance on the Deal
Clearlake believes TransUnion Healthcare's acquisition will help nThrive provide better services to its consumers consisting majorly of healthcare providers and payers. It hopes to merge TransUnion Healthcare with nThrive without hassle.
"We are confident that nThrive's outstanding leadership and complementary portfolio make nThrive an ideal home for TransUnion Healthcare, and we look forward to a seamless transition," said Chris Cartwright.
Transunion Moves Forward With the Acquisition of Other Companies
TransUnion announced that it is planning to buy Neustar for $3.1 billion to help the company expand into the digital marketing and fraud prevention spaces in September.
Neustar is a telecommunications services company based in Sterling, Virginia, providing service to more than 8,000 clients worldwide. The company's focus is to provide real-time information and analysis that helps businesses identify potential customers and determine which ads to show them. It is expected to rake in about $690 million of revenue and earnings in 2021.
TransUnion also announced it signed a definitive agreement to acquire Sontiq for $638 million. Sontiq delivers identity protection and mobile cybersecurity solutions. Sontiq is also expected to rake in about $85 million of revenue in 2021.
"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," the CEO said.