IPO Report: TransUnion (TRU)

Francis Gaskins |

TransUnion (TRU) is a leading global risk and information solutions provider to businesses and consumers. The company is based in Chicago, IL.

Twelve other companies are scheduled for the week of June 22. The full IPO calendar is available at IPO Premium.

SEC Documents

Manager, Joint-managers: Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Deutsche Bank Securities, RBC Capital Markets, Wells Fargo Securities, Credit Suisse
Co-managers: Drexel Hamilton, Evercore ISI, Loop Capital Markets, Stifel

End of lockup (180 days): Tuesday, December 22, 2015
End of 40-day quiet period: Tuesday, August 4, 2015

TRU scheduled a $650 million IPO with a market capitalization of $1.4 million at a price range midpoint of $22 for Thursday, June 25, 2015 on NYSE.


TRU is a leading global risk and information solutions provider to businesses and consumers.

TRU provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses.



Accumulated deficit (mm)





Per share dilution





Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

TransUnion (TRU)







annualizing adj net income




Big brand name for institutional portfolios

Q1 rev +16% to $353mm

P/E of 32.6 on adjusted net earnings

Price to sales 2.8

Price to bk 3, price to tangible bk -2


TRU is a leading global risk and information solutions provider to businesses and consumers.

TRU provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses.

Businesses embed TRU’s solutions into their process workflows to acquire new customers, assess consumer ability to pay for services, identify cross-selling opportunities, measure and manage debt portfolio risk, collect debt, verify consumer identities and investigate potential fraud.

Consumers use TRU solutions to view their credit profiles and access analytical tools that help them understand and manage their personal information and take precautions against identity theft.

TRU is differentiated by its comprehensive and unique datasets, its next-generation technology and its analytics and decisioning capabilities, which enable us to deliver insights across the entire consumer lifecycle.

Largest Provider

TRU believes it is the largest provider of risk and information solutions in the United States to possess both nationwide consumer credit data and comprehensive, diverse public records data, which allows us to better predict behaviors, assess risk and address a broader set of business issues for its customers.

TRU has deep domain expertise across a number of attractive industries, sometimes referred to as verticals, including financial services, insurance and healthcare.

TRU has a global presence in over 30 countries across North America, Africa, Latin America and Asia.

Addressable Market

TRU’s addressable market includes the big data and analytics market, which continues to grow as companies around the world recognize the benefits of building an analytical enterprise where decisions are made based on data and insights, and as consumers recognize the importance that data and analytics play in their ability to procure goods and services and protect their identities.

IDC estimates worldwide spending on big data and analytics services to be approximately $52 billion in 2014, growing at a projected compounded annual growth rate (“CAGR”) of approximately 15% from 2014 through 2018.

There are several underlying trends supporting this market growth, including the creation of large amounts of data, advances in technology and analytics that enable data to be processed more quickly and efficiently to provide business insights, and growing demand for these business insights across industries and geographies.

Leveraging TRU’s 47-year operating history and its established position as a leading provider of risk and information solutions, TRU has evolved its business by investing in a number of strategic initiatives, such as transitioning to the latest big data and analytics technologies, expanding the breadth and depth of TRU’s data, strengthening its analytics capabilities and enhancing its business processes.

As a result, TRU believes it is well positioned to expand its share within the markets TRU currently serves and capitalizes on the larger big data and analytics opportunity.

Intellectual Property

TRU has registered certain trademarks, trade names, service marks, logos, internet URLs and other marks of distinction in the United States and foreign countries, the most important of which is the trademark TransUnion name and logo. This trademark is used in connection with most of the services TRU sells and it believes it is a known mark in the industry.

TRU owns proprietary software that TRU uses to maintain its databases and to develop and deliver its services.

TRU develops and maintains business-critical software that transforms data furnished by various sources into databases upon which its services are built.

TRU also develops and maintains software to manage its consumer interactions, including providing disclosures and resolving disputes.

In all business segments, TRU develops and maintains software applications that TRU uses to deliver services to its customers, through a software-as-a-service model. In particular, TRU develops and maintains decisioning technology infrastructure that TRU hosts and integrates into its customers’ workflow systems to improve the efficiency of their operations.


In its USIS segment, TRU’s competition generally includes Equifax, Experian and LexisNexis, in addition to certain competitors whom TRU only competes with in specific verticals.

For example, TRU competes with FICO in the financial services vertical, with Solera and Verisk in the insurance vertical, with Emdeon, IMS Health, Inovalon and Trizetto in the healthcare vertical and with LifeLock in the fraud solutions market.

In its International segment, TRU generally competes with Equifax and Experian directly or indirectly through their subsidiaries or investments.

TRU also competes with other competitors that may focus on a particular vertical, country or region.

In its Consumer Interactive segment, TRU generally competes with Equifax, Experian, FICO and LifeLock as well as emerging businesses, some of whom offer free credit information.

5% Shareholders Pre-IPO

Investment funds affiliated with Advent International Corporation             48.8%

Investment funds affiliated with The Goldman Sachs Group, Inc.             48.8%

Gilbert H. Klemann        48.8%

Sumit Rajpal     48.8%  


No dividends are planned

Use of Proceeds

TRU expects to receive $610 million from its IPO and use it to repay debt.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
TRU TransUnion 32.38 -0.80 -2.41 1,929,227


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