TNS Announces Investment from Koch Equity Development LLC

January 11th, 2016

Transaction Network Services (TNS) and private-equity firm Siris Capital Group, LLC (Siris) announced today that an affiliate of Koch Equity Development LLC (KED) and co-investors including affiliates of Eaglehill Advisors LLC (Eaglehill) and MSD Capital, L.P. (MSD) have made a minority equity investment in Trident Private Holdings III, LLC, a holding company of TNS.  

TNS provides secure, mission critical connectivity and gateway services via a global network enabling its customers to exchange data and information and transact worldwide. Siris acquired TNS in a sponsor-led “take-private” transaction in 2013 and will continue to hold a controlling interest.

“Siris and KED share a similar philosophy on how to drive world-class performance and create value in companies like TNS,” said Frank Baker, co-founder and managing partner of Siris. “The investment provides a solid foundation for TNS’ management team to continue to pursue attractive growth and acquisition opportunities in new products and markets.”

“This is an exciting investment opportunity for KED,” said Brett Watson, managing director of KED. “TNS has an excellent reputation for delivering reliable interoperability solutions and a strong management team with a consistent record of delivering results.”

Matt Flamini, president of KED, added, “Joining with best-in-class investors like Siris in businesses with strong management teams is a core tenet of the KED investment strategy.”

Bob Aquilina, Siris Capital Executive Partner and Executive Chairman of TNS stated, “The investment is a strong validation of the market leadership and growth strategy of TNS, as well as the success achieved by the management team and Siris to date. We welcome the fresh perspective of the new investors to the board and their commitment to the success of TNS.”

Mike Keegan, TNS’ chief executive officer, commented, “Following the recent divestiture of the Caller Name and Line Information Database Solutions business, the company is better positioned from both a capitalization and growth perspective, providing us ample flexibility to continue to focus on growth in global managed network services across the payments, financial services, and telecom verticals, while continuing to serve our customers’ most mission-critical requirements at the highest levels.”

Eaglehill Advisors LLC has been advising TNS on strategic alternatives. Rothschild Inc. acted as financial advisor to KED. Winston & Strawn LLP and Sidley Austin LLP acted as legal advisor to Siris. Milbank, Tweed, Hadley & McCloy LLP acted as legal adviser to KED. The transaction was signed and completed on January 11, 2016. Additional terms of the deal were not disclosed.

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