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TransUnion Acquires Datalink Services to Boost Portfolio

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TransUnion (TRU - Free Report) recently announced that it acquired leading provider of vehicle and driving records, Datalink Services, Inc. d/b/a Compass Driving Records. The financials of the deal, signed on Aug 18, remain under wraps.

Datalink Services is a leading provider of driving and vehicle records and pre-screening services. In addition, it supports the requirements of other industries that meet Drivers Privacy Protection Act requirements.

This acquisition will enable TransUnion’s DriverRisk solution to offer the insurance industry a full driving record platform. It will also enhance its competitive strength and market value proposition, giving it an edge over its peers.

Toward the end of third-quarter 2016, the company collaborated with Carahsoft Technology Corp., a trusted government IT solutions provider. The deal was expected to deliver TransUnions’ investigative and risk management tool, TLOxp and its identity authentication and verification solutions to the public sector via Carahsoft's GSA Schedule 70 and NASA Solutions for Enterprise-Wide Procurement contracts.

TransUnion has outperformed the industry with an average year-to-date return of 52.1% compared with a gain of 19.5% for the latter. As emerging market economies continue to develop and mature, the company is well-positioned to gain from the associated favorable socio-economic trends. Additionally, increased risk of identity theft due to data breaches and higher consumer awareness about the importance and usage of their credit information are propelling the demand for TransUnion’s consumer solutions. Also, acquisitions are expected to bode well for the company in the near future.

TransUnion currently carries a Zacks Rank #2 (Buy). Some other stocks in the industry worth considering are Recruit Holdings Co.,Ltd. (RCRRF - Free Report) , Intertek Group plc (IKTSY - Free Report) and S&P Global Inc. (SPGI - Free Report) . All three stocks carry the same Zacks Rank as TransUnion .You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

Recruit Holdings is currently trading at a forward P/E of 26.1x.

Intertek Group has a healthy long-term earnings growth expectation of 13%

S&P Global has a solid long-term earnings growth expectation of 12.5%. It topped estimates in each of the trailing four quarters with an average positive earnings surprise of 9.5%.

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