TransUnion says it will strengthen its multichannel digital identity verification solutions with the addition of Sontiq, which provides software to thwart identity theft and cyber threats.
Chicago-based TransUnion expects its $638 million agreement to buy Sontiq, announced Tuesday, to close during the fourth quarter.
"As online commerce rapidly accelerates, TransUnion has calibrated its business to address consumer and customer challenges relating to identity," Chris Cartwright, president and CEO of TransUnion, said in a news release. "Augmenting our consumer interactive business with Sontiq's identity and cyber protection services will advance our work to enable consumers and businesses to transact with greater certainty."
Sontiq, based in Nottingham, Maryland, delivers the security product brands Identity Force, Cyberscout and EZShield directly to consumers through partners and customers. Identity Force provides monitoring, alerts and recovery services related to identity theft. Cyberscout offers forensic investigation services and tools to the insurance industry. EzShield delivers digital identity theft protection and mobile cybersecurity.
The Sontiq deal is Transunion's second M&A announcement in a little over a month. It said in mid-September that it had agreed to pay
With Sontiq, TransUnion expects to bolster its direct sales in digital banking and e-commerce while also selling Sontiq's services that cater to groups through employee benefits, insurance and other companies.
TransUnion cites Sontiq's flexible Intelligent Identity Security platform as one that will create co-brand opportunities for new customer programs for different businesses and use cases.
"We are excited to enter into the next phase of Sontiq's growth with TransUnion," Brian J. Longe, president and CEO of Sontiq, said in the release. "Together, we share a commitment to innovation and helping consumers and businesses protect the financial profiles they have built."
TransUnion noted that Sontiq is expected to generate approximately $85 million in revenue in 2021 and predicts it could achieve double-digit growth in the future as part of TransUnion's credit bureau operations.
In addition to the Sontiq and Neustar deals expected to close soon, TransUnion says its foundation for resolving digital identity issues has already been fortified by its past acquisitions of TLO, iovation, TruOptik and others.
