Analyst Note| Rajiv Bhatia, CFA |
Wide-moat-rated TransUnion reported a healthy quarter, with 12% organic constant-currency revenue growth. Revenue of $792 million was $16 million above FactSet consensus. Adjusted EBITDA margins were also healthy at 41.3%, up from 38.8% in the year-ago period. TransUnion announced some big moves as well. It announced that it will acquire Sontiq for $638 million and divest its healthcare unit for $1.7 billion. We don’t expect these corporate development activities to result in a large change to our fair value estimate of $108, which we will maintain. We continue to prefer Equifax over TransUnion based on the strength of Equifax’s workforce solutions segment.