Neustar Plans to Split into Two Independent Publicly Traded Companies

Neustar, Inc.

revealed its intention to split into two independent and publicly traded companies. According to the company, one would focus on Neustar's Information Services, while the other would take care of providing Order Management & Numbering Services. The company indicated its intention to accomplish the separation through a tax-free spin-off. Neustar's President and CEO, Lisa Hook, said, "Five years ago, Neustar embarked on a journey to become a market-leading provider of information services, while building upon our industry leadership in Order & Inventory Management and complex real-time Numbering Services." He continued to say, "We have successfully executed against this strategic plan. As the market opportunities in the information services and telecommunications sectors continue to evolve, today's announcement is the logical next step for Neustar. Each business will be better-positioned to grow as focused and sustainable companies." According to the company, Lisa Hook would serve as President and CEO of the Information Services company while Paul Lalljie, its SVP and CF, would serve as President and CEO of the Order Management & Numbering Services company. The company's chairman of the board, James Cullen, also reacted to say, "We carefully considered a variety of strategic alternatives and determined that a spin-off is the optimal path forward for Neustar. The proposed spin-off will enable Neustar shareholders to own and value each business separately, allowing each company to attract the investor base most appropriate for its distinct investment profile." As a result, the company indicated changes at the management levels in both the companies. Following the news, the stock traded 4.08 percent higher in the pre-market trading on Tuesday.