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TransUnion to Buy iovation, Boost Fraud Identity Services
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TransUnion (TRU - Free Report) has inked a deal to acquire Portland, OR-based authentication and fraud prevention solutions provider, iovation, for an undisclosed amount.
iovation is a big name in the device intelligence space. The company has a large database of reputation insights and cryptographically secure multi-factor authentication methods. It has insights into about 5 billion devices from over 35,000 brands, across more than 50 countries.
iovation’s product suite includes ClearKey password authentication tool, LaunchKey multi-factor authentication, FraudForce real-time device reputation and verification insight and SureScore machine learning based transaction outcomes predictor.
Chris Cartwright, president of TransUnion’s USIS division stated, “Our combined solutions will empower trusted relationships by identifying, monitoring and protecting both businesses and consumers as they interact online all around the world.”
The deal, subject to regulatory approvals and other conditions, is anticipated to close in late second-quarter or early third-quarter of 2018.
Strengthening Anti-fraud and Identity Management Capabilities
A 2017 market research report by Stratistics MRC predicts that global identity and access management market will witness a compounded annual growth rate (CAGR) of 14.8% during the 2016-2022 period, reaching $21 billion in 2022. In view of this significant opportunity offered by the market, we believe that the iovation buyout is a prudent move by TransUnion eyeing to strengthen its identity management business and expand globally.
Also, iovation’s customer base and channel partners, including Callcredit, which TransUnion is acquiring in the UK, are expected to help the company boost its presence in gaming and retail markets.
Our Observation
In the past year, TransUnion stock has rallied at a faster pace than the industry it belongs to. While the industry rallied 27.8%, the stock gained a massive 62.8%.
So, it appears that investors are rewarding the company’s moves to expand its technology capacity and increase market share.
Some other top-ranked stocks in the broader Business Services sector include Convergys Corporation , Automatic Data Processing (ADP - Free Report) and Broadridge Financial Solutions Inc. (BR - Free Report) , each carrying the same Zacks Rank as TransUnion.
The long-term expected earnings per share growth rate for Convergys Corporation, Automatic Data Processing and Broadridge is 9%, 11% and 10%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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TransUnion to Buy iovation, Boost Fraud Identity Services
TransUnion (TRU - Free Report) has inked a deal to acquire Portland, OR-based authentication and fraud prevention solutions provider, iovation, for an undisclosed amount.
iovation is a big name in the device intelligence space. The company has a large database of reputation insights and cryptographically secure multi-factor authentication methods. It has insights into about 5 billion devices from over 35,000 brands, across more than 50 countries.
iovation’s product suite includes ClearKey password authentication tool, LaunchKey multi-factor authentication, FraudForce real-time device reputation and verification insight and SureScore machine learning based transaction outcomes predictor.
Chris Cartwright, president of TransUnion’s USIS division stated, “Our combined solutions will empower trusted relationships by identifying, monitoring and protecting both businesses and consumers as they interact online all around the world.”
The deal, subject to regulatory approvals and other conditions, is anticipated to close in late second-quarter or early third-quarter of 2018.
Strengthening Anti-fraud and Identity Management Capabilities
A 2017 market research report by Stratistics MRC predicts that global identity and access management market will witness a compounded annual growth rate (CAGR) of 14.8% during the 2016-2022 period, reaching $21 billion in 2022. In view of this significant opportunity offered by the market, we believe that the iovation buyout is a prudent move by TransUnion eyeing to strengthen its identity management business and expand globally.
TransUnion Revenue (TTM)
TransUnion Revenue (TTM) | TransUnion Quote
Also, iovation’s customer base and channel partners, including Callcredit, which TransUnion is acquiring in the UK, are expected to help the company boost its presence in gaming and retail markets.
Our Observation
In the past year, TransUnion stock has rallied at a faster pace than the industry it belongs to. While the industry rallied 27.8%, the stock gained a massive 62.8%.
So, it appears that investors are rewarding the company’s moves to expand its technology capacity and increase market share.
Zacks Rank and Other Picks
TransUnion carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Business Services sector include Convergys Corporation , Automatic Data Processing (ADP - Free Report) and Broadridge Financial Solutions Inc. (BR - Free Report) , each carrying the same Zacks Rank as TransUnion.
The long-term expected earnings per share growth rate for Convergys Corporation, Automatic Data Processing and Broadridge is 9%, 11% and 10%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>