Neustar to pay $650M for Targusinfo

STERLING, Va. (AP) ? Neustar Inc., which offers communications clearinghouse services to a range of communications companies and Internet service providers, said Tuesday that it will buy privately held Targus Information Corp. for $650 million in cash. Nuestar also reported its third-quarter results, which beat analyst expectations.

Neustar shares rose more than 3 percent in extended trading.

Neustar believes the purchase of Targusinfo, which is based in Vienna, Va., and offers companies on-demand information and analytics services such as caller ID, will help it gain ground in the information services market. Both companies run databases that let companies identify customers on the Web or via phone.

Targusinfo brought in $149 million in revenue for the year that ended Sept. 30 ? up 20 percent from the previous year, Neustar said.

Neustar said it will pay for the deal with cash on hand and $600 million in committed financing. Neustar’s board authorized the company to buy back $250 million of its Class A common shares, in addition to a $300 million buyback plan the company announced in July.

Neustar expects the deal to close during the fourth quarter and believes it will add 20 cents or more to its 2012 adjusted per-share earnings.

For the quarter that ended Sept. 30, Neustar said it earned $37.8 million, or 51 cents per share ? higher than the 43 cents per share that analysts polled by FactSet expected.

In the same period a year earlier, the company reported net income of $29.9 million, or 42 cents per share.

Revenue rose 18 percent to $152.5 million. Analysts were looking for $148.8 million in revenue. Growth came from the company’s carrier and enterprise services.

Nuestar also raised its outlook for the full 2011 year, saying it now expects net income from continuing operations of between $1.76 and $1.84 per share and revenue of $595 million to $600 million. In July, the company forecast net income of $1.68 to $1.76 per share from continuing operations and $585 million to $600 million in revenue for the year.

Analysts expect $596.3 million in revenue.

Neustar shares rose $1.02, or 3.6 percent, to $29.06 after hours, topping their previous 52-week high. They finished regular trading up 44 cents at $28.04. In the past year, the stock traded between $22.24 and $28.12.