TransUnion is making another significant investment in helping finance companies and other clients keep fraud out of their book of business.

On Monday, TransUnion said it has signed a definitive agreement to acquire Neustar, an identity resolution company with leading solutions in marketing, fraud and communications, from a private investment group led by Golden Gate Capital and with minority participation by GIC.

According to a news release, the acquisition is for $3.1 billion in cash and is expected to close during the fourth quarter. It expands TransUnion’s digital identity capabilities through the addition of Neustar’s distinctive data and analytics, enabling consumers and businesses to transact online with greater confidence.

“The credit information and analytics that TransUnion provides make trust possible between consumers and businesses. As digital commerce continues to grow globally, TransUnion’s powerful digital identity assets, enhanced by Neustar’s distinctive data and digital resolution capabilities, will enable safer and more personalized online experiences for consumers and businesses,” TransUnion president and chief executive officer Chris Cartwright said in the news release. 

The company highlighted that the acquisition advances TransUnion’s strategy to diversify from its core credit solutions with complementary digital marketing and fraud mitigation capabilities.

Executives added that Neustar’s OneID platform will help to unify the digital identity capability TransUnion has built and acquired in recent years including the TLO data assets and fusion platform, the iovation device reputation network and the digital marketing capabilities of Tru Optik, among others.

“TransUnion and Neustar share a similar strategic vision, culture and focus on building innovative identity-based solutions which enable trusted connections between companies and people,” said Charlie Gottdiener, president and CEO of Neustar. “The two companies’ complementary businesses, products and relationships will offer benefits for our combined customers, employees and other stakeholders across a diverse set of markets.”

TransUnion mentioned other key benefits of the proposed transaction, including:

• The addition of Neustar’s talent, data and products will enhance TransUnion’s position as a global information and insights company providing diverse, high-growth credit and non-credit solutions at scale.

• Neustar’s OneID identity resolution platform will increase the speed and sophistication of TransUnion’s identity-based solutions, strengthening TransUnion’s offers across industry verticals in the U.S., as well as global markets in the longer term.

• The combined company will be well positioned to solve customer and consumer challenges related to identity

• Neustar’s broad customer base advances TransUnion's diversification into new markets and verticals and presents significant opportunities for cross-selling and innovation.

Executives pointed out that Neustar’s security business, which is excluded from the transaction, will become a Golden Gate Capital and GIC portfolio company following close.

“Over the last four years, Neustar has meaningfully scaled its core portfolio of solutions, completed strategic investments in its growth platforms and technology, and enhanced its winning culture,” Golden Gate Capital managing director Rishi Chandna said. “We are proud to have partnered with management and the talented Neustar team to execute this successful transformation into a leading provider of identity-driven solutions which leading brands rely on every day to connect with their prospects and customers.

“We have great respect for TransUnion and are confident they are the right partner for Neustar in its next chapter,” Chandna added.