Sunday, March 1, 2009

TNS to Acquire VeriSign's Communication Services (SS7) for $230M

TNS, which provides data communications services for transaction-oriented applications, has agreed to acquire VeriSign's Communication Services Group (CSG) for $230 million in cash.


CSG operates one of the largest un-affiliated SS7 (Signaling System No. 7) networks in the United States.


CSG also delivers intelligent database services, such as caller ID, to the telecommunications industry, and provides roaming and clearing services to the wireless telecommunications industry. TNS intends to integrate the acquired business into the Telecommunication Services Division (TSD).


TNS said the acquisition enables its to more effectively scale its existing SS7 network and database offerings, add a group of blue chip customers, deepen the TSD management team and significantly augment product development within TSD.


The acquisition is planned to be financed through a combination of new financing of up to $250 million and cash on hand. TNS will also be required to amend its 2007 Credit Facility to allow for the acquisition and new financing. The transaction is expected to be accretive to TNS' 2009 earnings upon close. The boards of directors of both companies have approved the acquisition which is expected to close within the next 60 days, subject to customary regulatory approvals and the successful completion of financing.
http://www.tnsi.com
http://www.verisign.com

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