Sterling-based Neustar announced this morning that the company will go private under a deal with Golden Gate Capital valued at $2.9 billion.
Founded as a division of Lockheed Martin in 1998, Neustar came to prominence as the administrator of the North American Numbering Plan for phone numbers and the manager of internet IP addresses. In recent years, the company has become a leader in mining big data to provide real-time analytics to marketers. In June, the company announced plans to split into two publicly traded companies—one focusing on call routing services and the other on marketing and security services.
San Francisco-based Golden Gate Capital had a stake of about 2.4 million shares in Neustar as of Sept. 30. The private investment group will pay $1.8 billion, with stockholders receiving $33.50 per share in cash. That’s a 21 percent increase over Tuesday’s closing price and 45 percent higher than the stock price on Nov. 11 when Golden Gate Capital’ filed disclosures its equity position.
The transaction is expected to close by third calendar quarter of 2017.