“While these changes involve difficult decisions, they strengthen TransUnion and create an opportunity to extract more value from our recent acquisitions. TransUnion expects to make these investments while continuing to prioritize debt prepayment with a targeted net leverage ratio of 3.0x. In 2026 and going forward, the Company expects capital expenditures to be 6 percent of revenue.Īltogether, the program is expected to impact approximately 10 percent of the Company’s current workforce through relocation to the GCC locations and position eliminations. The remaining expense includes approximately $65 million already planned and communicated to complete Project Rise plus approximately $145 million to implement OneTru TM and optimize the operating model.Ĭapital expenditures are expected to increase to 9 percent of revenue in 2024 and return to 8 percent in 2025. Employee separation and facility exit costs are expected to make up approximately $155 million of the total. To capture the benefits, TransUnion expects to incur approximately $355 to $375 million of one-time pre-tax expenses, with the majority incurred by the end of 2024. I’m excited about TransUnion’s direction and believe that these changes enhance our ability to deliver even more innovative solutions that help customers grow and protect their businesses,” said Chris Cartwright, President and CEO, TransUnion. We believe these investments will help optimize our global operating model and enhance our market-leading technology to reduce costs, accelerate innovation and drive growth. “Today’s announcement reflects our continued focus on creating shareholder value. This new, integrated product platform, branded OneTru TM, will provide customers with seamless access to TransUnion’s broad portfolio of data, solutions and capabilities for more rapid product development and commercialization. TransUnion intends to further leverage Neustar’s state-of-the-art technology to streamline its product delivery platforms, achieve material savings and increase innovation velocity. This initiative migrates the majority of TransUnion’s technology applications to a new software foundation within leading public clouds. In addition, the Company plans to eliminate roles in the near-term to further reduce operating expenses.Įxpand Technology Capabilities: TransUnion expects to successfully complete its cloud migration, called Project Rise, by the end of 2024 as planned. The Company plans to transition additional roles to the GCC locations over the course of the next two years, driving material cost savings and productivity benefits. Since then, the network has grown to more than 4,000 employees, or about one-third of TransUnion’s employee base, in India, South Africa and Costa Rica, supporting a wide range of functions. Optimize Operating Model: TransUnion established its award-winning GCC network in 2018 to centralize, standardize and automate work in locations with deep talent pools. This initiative encompasses two components: Approximately half of the operating expense savings, which exclude depreciation and amortization, are expected to be realized in 2024. The Company expects to deliver $120 to $140 million of annualized operating expense savings and a $70 to $80 million capital expenditure reduction in 2026 relative to 2023 levels. The Company believes these actions will reduce costs, accelerate innovation and increase organic growth. TransUnion will also leverage Neustar’s cloud-native technology to create its next-generation integrated data management, identity resolution, analytics and delivery platform. The Company will transition additional roles to its successful Global Capability Centers (GCCs) to improve productivity, reduce costs and fund growth. 15, 2023 (GLOBE NEWSWIRE) - TransUnion (NYSE: TRU) (the “Company”) today announced the next step in its ongoing, multi-year transformation effort to optimize its operating model and advance its market-leading technology.
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