TransUnion buying identity security company Sontiq for $638M

TransUnion agreed to acquire Sontiq Inc., a Nottingham, Md.-based provider of digital identity protection and security solutions, for $638 million.

The transaction is expected to close in the fourth quarter.

Sontiq is expected to generate approximately $85 million of revenue in 2021, and grow double digits in the future driven by significant revenue synergies.

TransUnion will acquire Sontiq for approximately 19x expected full-year 2021 adjusted EBITDA and expects the acquisition to be neutral to adjusted EPS in 2022 and accretive thereafter.

TransUnion also announced another deal to sell its healthcare technology unit TransUnion Healthcare Inc. to nThrive Inc. for about $1.74 billion in cash.