Golden Gate Capital has agreed to take Neustar (NYSE: NSR) private for $33.50 per share in cash, representing a 21% premium to the company's closing price Tuesday and a purchase price of $1.8 billion. The deal values Neustar at $2.9 billion, including debt. Originally a part of Lockheed Martin, the company is a provider of marketing and advertising services that hopes to compete directly with heavy hitters such as Adobe (NASDAQ: ADBE), Oracle (NYSE: ORCL) and Salesforce (NYSE: CRM).
One reason Neustar can reasonably hope to do so is that the company has been an active strategic acquirer in its own right, completing 16 deals in the past decade, according to the PitchBook Platform—all in the IT or B2B sectors. GGC has displayed a similar appetite, with 154 deals over the same timeframe, with a clear preference of its own for the IT (42%) and B2B (21%) spaces.
GGC is also active when it comes to add-ons, with 46% of its acquisitions between 2006 and 2015 serving as additions to portfolio companies. So by acquiring Neustar, GGC is flipping the script: Instead of buying a smaller company and building it up, the firm will shell out big for a business that's already much more than just a foundation.