NeuStar's Stock Soars After Buyout Deal With Golden Gate

By Tomi KilgoreMarketsMarketWatch Pulse

NeuStar Inc. said Wednesday it agreed to be acquired by an investment group led by private-equity firm Golden Gate Capital in a deal valued at $2.9 billion, including debt. Under terms of the deal, Golden Gate will pay $33.50 for each NeuStar share outstanding, which represents a 19% premium to Tuesday's closing price of $27.65, and values NeuStar at about $1.85 billion. On Nov. 14, a Golden Gate disclosed that it had owned 2.43 million shares of the data analytics company as of Sept. 30. The deal is expected to close no later than the third quarter of 2017. In June, NeuStar said it planned to split into two independent, publicly-traded companies. NeuStar's stock, which shot up 20% in premarket trade, had run up 15% year to date through Tuesday, while the S&P 500 had gained 11%.

Copyright © 2016 MarketWatch, Inc.

Continue Reading Below