22 June 2016

Neustar $NSR Decides to Split the Company, Investor Webcast Replay

Neustar $NSR stock chart (source: google.com) - stock down over 56% since Aug 2, 2013
In less than three years, Neustar (NYSE: NSR) (domain: neustar.biz) has lost over half of its shareholder value as the chart above indicates, primarily due to the pending loss of its very profitable NPAC contracts. The technology company, which includes domain name registry services (.us, .biz, .co, new gTLDs, etc.), has made the decision to "separate into two independent publicly traded companies: 
  • Separation to maximize shareholder value by creating two highly focused companies, intended to be structured as a tax-free spin-off likely to occur over the next 12 months
  • One company will focus on Information Services including Marketing, Security and related Data Services (including domain registry services), while the other company will focus on Order Management & Numbering Services, including NPAC Services."

Lisa Hook, currently President and Chief Executive Officer of Neustar, will serve as President and Chief Executive Officer of the Information Services company, which will be rebranded with a new name. Paul Lalljie, currently Senior Vice President and Chief Financial Officer of Neustar, will serve as President and Chief Executive Officer of the Order Management & Numbering Services company, which will retain the Neustar name.

Neustar provided the following information with the announcement:
  • Press release;
  • Fact sheet (pdf) and announcement fact sheet (pdf) available via webcast (below);
  • SEC filing;
  • Infographic (an excerpt of which is below);
  • Conference call replay available through 11:59 p.m. (Eastern Time) on June 28, 2016 by dialing 1-877-870-5176 (international callers dial 1-858-384-5517) and entering replay PIN 2254013, or by going to the Investor Relations tab of the Company’s website (www.neustar.biz)--Webcast Presentation Click here for webcast replay;
  • Any potential separation, which will be subject to final approval by the Neustar Board of Directors, is likely to take approximately 12 months to complete;
  • Completion of the transaction is subject to a number of customary conditions, including effectiveness of the Form 10 to be filed with the SEC. Additionally, as the company evaluates the preferred transaction structure, it continues to assess what regulatory and other approvals, if any, may be required to complete the transaction;
  • Neustar has retained J.P. Morgan as financial adviser and Gibson, Dunn & Crutcher LLP and Goodwin Procter LLP as legal counsel in connection with the proposed spin-off.
Infographic excerpt (source: neustar.biz) 
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