TransUnion Announces Secondary Offering (revised)

Business service provider TransUnion (TRU) has recently announced a secondary offering of 16 million shares. The company will also grant the underwriters an option to purchase an additional 2.4 million shares to cover any over-allotments. However, TRU shares were down by approximately 2% to close at $33.00 as of Sep 9, 2016.

BofA Merrill Lynch, the investment banking division of Bank of America Corporation (NYSE:BAC) (BAC), and Credit Suisse (SIX:CSGN) Group AG (CS) are acting as underwriters for the equity offer. TransUnion intends to utilize the proceeds from the offering on behalf of the selling stockholders.

The stocks will be offered over a period of time through the open market or through negotiated transactions at market prices prevailing at the time of sale or at negotiated prices. The secondary offering is expected to close on Sep 14, 2016, subject to mandatory closing conditions.

Headquartered in Chicago, IL, TransUnion offers data and analytics solutions, particularly in credit risk management. The company is one of the three largest credit reporting agencies in the U.S. What sets TransUnion apart is its distinctive and comprehensive datasets, next-generation technology and analytics and decision-making capabilities, which enable it to deliver insights across the complete consumer lifecycle.

TransUnion boasts rich domain proficiency across a wide range of industry verticals, including insurance, healthcare and financial services. It also caters to verticals like wireless, real estate and general commercial/business information.

The company’s addressable market includes the burgeoning Big Data and analytics market, which is expanding at a rapid pace as companies comprehend the advantages of building an analytical enterprise where decisions are derived from data and insights. Numerous underlying trends are supporting this market growth, including the creation of massive amounts of data; advances in technology and analytics that allow data to be processed more swiftly and efficiently; and mounting demand for these business insights across industries and geographies.

Research firm IDC expects global spending on Big Data and analytics services to grow at a projected compounded annual growth rate of 23.1%, and reach $48.6 billion in 2019. In order to capitalize on the immense potential growth of this market, TransUnion has leveraged its next-generation technology in order to strengthen its analytics capabilities and has further expanded its database.

TransUnion currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the industry includes Hooper Holmes Inc. (HH), carrying a Zacks Rank #2 (Buy).

(We are reissuing this article to correct a mistake. The original article, issued September 12, 2016, should no longer be relied upon.)

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