Sterling, Virginia-based technology and analytics services provider Neustar (NYSE: NSR) will divide into two independent, publicly-traded companies with an intended timeline of one year to completion via a spinoff intended as tax-free.
Neustar said Tuesday the two separate businesses will beÂ one focused on information services with $470 million in 2015 revenue and a second order management and numbering services company that generated $580 million in sales last year and helps run the country’s phone numbering system for the Federal Communications Commission.
The order management and numbering services-focused companyÂ will retain the Neustar brand, while the information servicesÂ business will adopt a new name.
Neustar’s board of directors holds final approval over the plan to divide the company, which is also examining potential regulatory processes it may be required to go throughÂ prior toÂ the separation.
Neustar, which spun off from Lockheed Martin (NYSE: LMT) in 1999, is in the process of transitioning out from its role as the FCC’sÂ contractor for the Local Number Portability Administrator program that routes telephone calls and helps transfer customers’ phone numbers across carriers.
The FCC selected Ericsson‘s (NASDAQ: ERIC) Telcordia subsidiary in 2015 to take over the LNPA contract, from which Neustar generated approximately half of its $964 million in 2014 revenue, according to a Moody’s Investors Service report from April 2015.
Current Neustar CEO Lisa Hook will transition into the same title for theÂ information services company and Chief Financial Officer Paul Lalljie will hold the chief executive role at the order management and numbering services company.