Struggling infrastructure services firm and domain registry Neustar is set to go private in a $2.9 billion deal.
The company, best known for .biz, .co and .us, has agreed to be bought out by a group led by Golden Gate Capital.
The $33.50-per-share offer, announced on Wednesday and which Neustar’s board has approved, is a 45% premium over the closing price the day before Golden Gate first disclosed it had a stake.
That’s still hell and gone from the roughly $45 the shares were trading for a few years ago, before the company first raised concerns that its lucrative number portability deal with the US government was on the ropes.
Since it became apparent that the numbering contract, which accounts for about half of Neustar’s revenue, was at risk, the company has attempted to focus its efforts on marketing services, security and domains.
That effort included the $87 million acquisition of registry rival Bombora (owner of ARI and AusRegistry) last year.
Earlier this year, the company announced its intention to split into two, basically spinning off all of its businesses not exposed to the US government contract.
It’s not entirely clear whether that plan will be followed through, but Neustar can no doubt be expected to go through some significant restructuring under new ownership. Golden Gate et al are not altruists, after all.
Neustar has 30 days to consider better offers from other white knights, under the terms of the deal.
If ultimately given the final rubber stamp, the deal may still not close until the third quarter of 2017, Neustar said.