TNS, a provider of data communications services for transaction-oriented applications, has closed its acquisition of the Communications Services Group from VeriSign. The purchase price paid to VeriSign was approximately $226 million in cash, subject to post-closing working capital adjustment, and was funded by TNS through the proceeds from a new $230 million Term Loan Facility.
The acquisition is intended to help TNS scale its unaffiliated SS7 network in the United States, become a provider of intelligent database services, including caller ID, to the telecommunications industry, and enter the roaming and clearing services market provided to the wireless telecommunications industry.
TNS is integrating the acquired assets into its Telecommunication Services Division. Management expects the transaction to be accretive to TNS’ 2009 adjusted earnings from the day of close and will provide financial and operational detail relating to the acquisition as well as an update to TNS’ combined financial outlook on its first quarter 2009 conference call to be held after the market closes on May 5.