Madison Dearborn Capital Partners has agreed to acquire a 51% equity stake in consumer credit reporting company TransUnion from the Pritzker family, which will retain the other 49 percent. No financial terms were disclosed, although the Wall Street Journal says the deal values TransUnion at around $2 billion.
TransUnion, a global leader in credit and information management, announced today that the Pritzker family business interests have reached an agreement with Chicago-based Madison Dearborn Partners, LLC. Under the terms of the agreement, Madison Dearborn Partners will acquire a 51 percent equity stake in TransUnion. The Pritzker family business interests will retain approximately 49 percent ownership of the Company.
“Madison Dearborn Partners and the Pritzker family share a long-term view of TransUnion and a belief that our partnership, combined with the strength of TransUnion’s leadership and dedicated team of associates, will be a catalyst for the acceleration of TransUnion’s strategy and growth,” said Penny Pritzker, Chair of TransUnion. “We look forward to partnering with the Madison Dearborn Partners team to capitalize on the numerous growth opportunities before us.”
“We will continue to enjoy the support and guidance that the Pritzker family has provided and we will add the resources, network and expertise of Madison Dearborn Partners,“ said Bobby Mehta, President and Chief Executive Officer of TransUnion. “This is a powerful combination and will truly enable us to accelerate the execution of our strategy and deliver valuable solutions to help our customers achieve their goals.”
Madison Dearborn Partners’ objective is to invest in and partner with companies that have strong management teams and business strategies to achieve significant, long-term appreciation in value.
“TransUnion is a remarkable Company, with an extensive global reach, diverse service offerings and a strong management team,” said Tim Hurd, a Managing Director for Madison Dearborn Partners. “The Company is a market-leader in an industry that has played and will continue to play a critical role in the global economy — helping businesses to better manage risk and improve decision making and consumers to understand and manage their credit. We look forward to partnering with the Pritzker family business interests and to investing in TransUnion’s future to support its strategy for diversification and growth.”
Terms of the agreement were not disclosed. Closing of the transaction is subject to satisfaction of customary conditions to closing and regulatory approvals.
Morgan Stanley & Co. Inc. acted as financial advisor to the Company. The Pritzker Organization, LLC and BDT & Company, LLC acted as financial advisors to the selling stockholders and Latham & Watkins, LLP acted as legal advisor to the Company and the selling stockholders.
BofA Merrill Lynch, Deutsche Bank Securities Inc., and J.P. Morgan Securities Inc. acted as financial advisors to Madison Dearborn Partners. Kirkland & Ellis, LLP acted as legal advisor to Madison Dearborn Partners.
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in more than 25 countries on five continents. www.transunion.com/business
About Madison Dearborn Partners
Madison Dearborn Partners, LLC, based in Chicago, is one of the most experienced and successful private equity investment firms in the United States. Madison Dearborn Partners has raised over $18 billion of capital since its formation in 1992 and has invested in more than 100 companies. Madison Dearborn Partners invests in businesses across a broad spectrum of industries, including basic industries, communications, consumer, energy and power, financial services, and health care. Its noteworthy financial services investments include Nuveen Investments, CapitalSource, and PayPal. For more information, please visit www.mdcp.com.