TransUnion helps credit scores transcend boundaries. The firm is one of the three major consumer credit reporting agencies (the others being Experian and Equifax) that lenders use to help determine a borrower's creditworthiness. The company maintains credit histories of more than 500 million people in more than 25 countries, which it uses to help banks, insurance providers, retailers, and others manage risk and reduce fraud. Subsidiary TransUnion Interactive provides online subscription-based credit management products to consumers. TransUnion is owned by Advent International and GS Capital Partners.
In 2012 Advent and GS Capital bought TransUnion from Madison Dearborn Partners and the Pritzker family. The deal valued TransUnion at around $3 billion.
TransUnion filed to go public in 2011. The company planned to raise up to $325 million in the initial public offering. However, plans to go public were shelved as the IPO market stagnated that year.
TransUnion operates in three business segments: information services; international services; and consumer services. Its information services division (representing more than 60% of sales) provides credit reports, analytical services, and other services that help companies make decisions. TransUnion's international services arm helps domestic companies expand overseas and also assists international companies team with partners in other countries. The consumers services division gives people access to view and manage their credit health.
TransUnion has a presence in 25 countries around the world. Its geographic reach includes the Americas, Europe, Africa, and the Asia-Pacific region.
The economic downturn sent TransUnion's revenues down from 2008 through 2010 as demand for its services fell. By 2010 and 2011 the economy began to improve and TransUnion's sales improved. Sales grew by about 7 % in 2011, exceeding the $1 billion mark.
Global expansion is a priority for TransUnion. In 2011 TransUnion acquired 80% of a software and services company in Brazil. The following year TransUnion expanded its presence in Africa when it acquired a majority share of CRBAfrica -- a credit risk management firm. In recent years TransUnion also has targeted developing markets in Asia and today operates in nations including China, India, Hong Kong, Singapore, and Thailand.
TransUnion has been busy expanding its reach and growing its capabilities. The company is focused on penetrating industries that have low use of information-based analytics and decisioning technology, such as insurance and health care. In line with that strategy, TransUnion boosted its health care data in 2011 when it acquired the Denver-based Financial Healthcare Systems (FHS). FHS technology provides patients with real-time, Internet-based data of out-of-pocket expenses for medical treatment. Previously TransUnion acquired North Carolina-based medical billing services provider MedData.
TransUnion also has a strategy to expand its interactive business. In 2010, TransUnion Interactive launched its streamlined zendough.com product to help consumers manage their credit.
TransUnion partnered with rivals Experian and Equifax to establish VantageScore, an alternative to the FICO credit score system. FICO originator Fair Isaac challenged the VantageScore partners in an antitrust lawsuit, which it lost in 2009. Although VantageScore and FICO are competing systems, Fair Isaac continues to use TransUnion, Experian, and Equifax data so it remains a partner (as well as a competitor) of the credit bureaus. – less