US telecommunications firm Neustar is to buy technology company Targus Information for $650 million (€472.4 million), it was announced today.

TargusInfo, which was founded by Irish American George Moore in 1993, provides caller identification services and enables customers to identify, verify and locate customers, with secure databases.

The company processes in the region of 100 billion transactions a year, and generated $149 million in revenues in the year to September 30th, 2011, a rise of 20 per cent year on year. Adjusted earnings before interest, taxation, depreciation and amortisation margin was 45 per cent, when the impact of expenses connected to a recapitalisation in 2010 was discounted.

The move is expected to boost Neustar's position in the $30 billion information services market.

"This transaction is a significant and logical step in our growth strategy," said Neustar chief executive Lisa Hook. "Neustar has long provided communications, media and marketing companies with insights derived from their own data. By combining with TargusInfo, we will be able to offer a much more diverse portfolio of services in the real-time information and analytics market."

The acquisition is expected to add about 20 cent to Neustar's earnings per share in 2012, and will help Neustar generate revenues of approximately $750 million as it develops its information and analytics services and opens them up to a wider range of businesses.

Mr Moore welcomed the deal. "Given how well our two companies know each other and the compatible cultures, we are confident that the strengths of both platforms will be preserved and that the two companies will be smoothly integrated," he said.

The cash acquisition will be funded through $600 million in financing and cash on hand, and is expected to close in the fourth quarter of the year.