Neustar Purchases MarketShare Partners in $450 Million Deal

Acquires Analytics Company That Provides Data on Ad Spend

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Marketing data and analytics company Neustar has agreed to buy MarketShare Partners in a $450 million cash deal, Neustar said Thursday.

MarketShare Partners is a marketing analytics technology provider with clients including MasterCard, Turner Broadcasting, Intel, Twitter and CarMax.

The acquisition expands the Sterling, Virginia-based company's marketing services, allowing it to provide data to CMOs so they can more precisely allocate their spend across all sales channels in both digital and traditional media. Neustar already operates complex data registries. Thursday's acquisition is meant to help advertisers decide what will give them the greatest ROI.

"This transaction advances our growth strategy in the rapidly evolving $19 billion marketing data and analytics market and strengthens our position as a leading information services company," Lisa Hook, president and CEO of Neustar, said in a statement.

Neustar's data sources and proprietary analytics enables it to deliver real-time insights to clients, specifically in marketing, IT/security and networking departments. In 2014, the company generated about $964 million in revenue.

MarketShare's revenue grew at a compounded annual growth rate of 38% from 2011 to 2014 and generated $57 million in revenue for the twelve months ended September 30, 2015, according to a statement from Neustar.

After tax benefits, the purchase price for MarketShare Partners will be reduced to about $390 million, Neustar said. The transaction is expected to close in the fourth quarter of 2015 pending approval and other customary closing conditions.

In October 2013, Neustar purchased Aggregate Knowledge for $119 million to augment its campaign measurement capabilities.

In March, the Federal Communications Commission handed a lucrative phone-number management contract that Neustar had handled since 1997 to Ericsson's Telcordia division. The work had accounted for roughly half of Neustar revenue in recent years, according to filings with the Securities and Exchange Commission. Neustar said the F.C.C.'s process had been flawed and challenged the decision in court.

-- With Bloomberg News

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