TransUnion Stock Price, News & Analysis

TransUnion's Q3 2021 Credit Industry Insights Report indicates a strong rebound in the credit card sector, with 19.3 million originations, a 17.2% year-over-year increase. Gen Z leads in credit card originations with a share of 14.2%, up from 9.5% two years ago. Delinquency rates for Gen Z have dropped to 1.52%, a significant improvement from pre-pandemic levels. Total credit lines reached an all-time high of $3.9 trillion, reflecting overall consumer demand. Personal and auto loan markets also show positive trends, with 4.4 million personal loan originations.

nThrive, a healthcare revenue cycle management platform, has announced its acquisition of TransUnion Healthcare, enhancing its offerings in the RCM sector. This strategic move aims to improve financial outcomes for over 1,850 hospitals and 650,000 physicians. TransUnion Healthcare is anticipated to generate approximately $190 million in revenue in 2021. The acquisition aligns with nThrive's mission to streamline processes and provide better financial assurance to clients. Clearlake Capital backs this acquisition, aiming to build a leading end-to-end RCM technology platform.

TransUnion reported a strong third quarter 2021, achieving total revenue of $792 million, a 14% increase year-over-year. Net income rose to $114 million, with diluted earnings per share at $0.59. The company raised its full-year guidance due to continued market recovery and announced acquisitions of Neustar for $3.1 billion and Sontiq for $638 million, alongside the sale of its Healthcare business for $1.735 billion. Adjusted EBITDA reached $327 million, marking a 21% increase compared to the previous year.

TransUnion has signed a definitive agreement to sell TransUnion Healthcare to nThrive for $1.735 billion in cash, expected to close in Q4 2021. This deal is anticipated to generate approximately $1.4 billion in after-tax proceeds. The funds will be used to pay down debt and support future acquisitions, including Neustar and Sontiq, which are aimed at enhancing long-term revenue growth. The divestiture will allow TransUnion to focus on its core information and insights business.

TransUnion (NYSE: TRU) has announced a definitive agreement to acquire Sontiq, a leader in digital identity protection, for approximately 19 times its expected FY2021 Adjusted EBITDA. This acquisition aims to enhance TransUnion's identity solutions portfolio, expected to generate around $85 million in revenue for Sontiq in 2021. The transaction is projected to be neutral to Adjusted Diluted EPS in 2022 and accretive thereafter, offering a high-margin revenue growth potential due to synergies. It is anticipated to close in Q4 2021, subject to regulatory approvals.

Merkle has partnered with TransUnion (NYSE: TRU) to enhance Connected TV (CTV) advertising through its Merkury platform. This collaboration integrates Merkury's identity resolution capabilities with TruAudience Data Marketplace, allowing brands to use first- and third-party data for better audience targeting. As CTV popularity rises, the partnership aims to enable marketers to engage consumers more effectively. Both companies emphasize the importance of trustworthy data for advertisers and publishers to achieve scalable and accurate advertising.

TransUnion and e2Value have partnered to enhance property insurance valuations, addressing underinsurance risks. Their Pronto® solution allows clients to access real-time data on replacement costs, crucial due to ongoing pandemic-related volatility in labor and materials pricing. This collaboration aims to provide carriers with better risk assessment tools for new and existing policies, ultimately protecting consumers from potential underinsurance. The integration leverages TransUnion's existing solutions to deliver comprehensive insights for effective portfolio management.

TransUnion announces a $400,000 donation to Credit Builders Alliance to aid underrepresented communities in building credit. This initiative targets the over one billion individuals globally categorized as ‘credit invisible.’ The aim is to improve credit health, especially in the Black community, where 45% have subprime scores. The funds will support nonprofit lenders in providing small dollar loans, enhancing credit reporting capacity. TransUnion strengthens its commitment to financial inclusion, having previously contributed to educational efforts earlier in 2021.