TransUnion Corp., one of the largest providers of consumer credit scores and credit checks in the U.S., was acquired for $3 billion this morning.
A consortium led by Advent International and GS Capital Partners acquired the risk-monitoring organization from Madison Dearborn Partners, the Pritzker family’s business interests, and other stock holders. After the transaction closes — scheduled for spring 2012 — the company’s existing management team will stay in place, including TransUnion CEO and President Bobby Mehta.
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As a consequence of the deal, an earnings call scheduled for Feb. 21 has been cancelled. TransUnion will file its Form 10-K for fiscal year 2011 today, it said.
The potential for an acquisition deal was reported by Reuters in October, when sources estimated TransUnion might sell for more than $2 billion. Today’s announcement shows that floor estimate was far too low.
Reuters’ estimate may have been based in part on a deal from two years prior, when Madison Dearborn acquired its 51 percent stake of TransUnion from the Pritzkers for roughly $1 billion, according to the Wall Street Journal.
(Related: New Study Reveals What’s Truly Driving Lower Credit Card Balances)
“Since we spun TransUnion out of the Marmon Group we have extended the global footprint into more than a dozen countries and are leading change in the way many industries, like healthcare and insurance, leverage data assets,” said Penny Pritzker, chairwoman of TransUnion’s board, in a release announcing the deal.
BofA Merrill Lynch and Deutsche Bank provided financial advice to TransUnion in the deal, while Latham & Watkins provided legal counsel. Evercore Partners and Goldman, Sachs & Co. advised the sponsors, and bank and bridge financing commitments were provided by Deutsche Bank, and affiliates of Goldman Sachs.
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