RTTNews | Oct 26, 2021 07:35AM EDT

07:35 Tuesday, October 26, 2021 (RTTNews.com) - Information and insights company TransUnion (TRU) on Tuesday said it has agreed to acquire Sontiq, a digital identity protection and security solutions provider for $638 million.

TransUnion believes that Sontiq's Identity security solutions complements TransUnion's digital identity assets and solutions, enabling the combined company to offer comprehensive identity solutions to customers.

Sontiq is expected to generate revenue of about $85 million in 2021, with double-digits growth in the future, driven by significant revenue synergies.

TransUnion said it will acquire Sontiq for about 19 times expected FY2021 adjusted EBITDA.

The transaction is neutral to adjusted EPS in 2022 and expected to add to earnings afterwards.

"The acquisition of Sontiq will create a best-in-class consumer identity protection platform that will advance TransUnion's focus on digital safety and security and will provide comprehensive solutions for businesses and consumers," TransUnion said in a statement.

The deal is expected to close in the fourth quarter of 2021.

TransUnion shares are climbing more than 5% in pre-market $123.42. The stock closed Monday's regular trade at $118.18, up $1.87, or 1.61%.

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