Private investment group buying Neustar in $1.83B deal

NEW YORK _ A private investment group led by Golden Gate Capital is buying Neustar in a deal valued at approximately $1.83 billion.

Neustar Inc. provides communications clearinghouse services. Its shareholders will receive $33.50 per share, a 21 per cent premium to the Sterling, Virginia-based company’s Tuesday closing price of $27.65.

The companies put the transaction’s value at about $2.9 billion, including debt.

Neustar has 30 days in which it may seek alternative proposals from third parties.

The deal is targeted to close no later than then end of 2017’s third quarter. It still needs approval from Neustar shareholders.

Neustar Inc. Class A shares rose $5.53, or 19.9 per cent, to $33.17 in morning trading Wednesday.