TNS acquires Communication Services Group from VeriSign

TNS, Inc., a provider of business data communications services, has acquired Communication Services Group (CSG) from VeriSign, Inc. for a cash consideration of approximately $226 million.

VeriSign is a provider of infrastructure services across voice and data networks. CSG is a provider of intelligent database services to the telecommunications industry. All the companies are based in the US.

The transaction was funded from a new $230 million term loan facility.

Announcement (March 2, 2009):

TNS has entered into a definitive agreement with VeriSign, Inc. to acquire its CSG for $230 million in cash.

TNS is planning to integrate CSG into the Telecommunication Services division. The acquisition would be financed through a combination of new financing of up to $250 million and cash on hand. The transaction is expected to close within the next 60 days

SunTrust Robinson Humphrey, Inc. is acting as financial advisor and Kirkland & Ellis LLP as legal advisor to TNS.

Deal Value (US$ Million) 226
Deal Type                Acquisition
Sub-Category             Asset Purchase
Deal Status              Completed: 2009-05-04

Deal Participants

Target (Company)   VeriSign, Inc. - Communication Services Group
Acquirer (Company) TNS, Inc.
Vendor (Company)   VeriSign, Inc.

Deal Rationale

The acquisition would create strategic, financial, and operational benefits for TNS.

Related terms: acquisition, advisor, business, legal