Neustar to acquire assets from Transaction Network Services for $173 million
Sterling-based technology company Neustar has entered into an agreement to acquire assets from Reston-based Transaction Network Services for $173 million, the company announced Wednesday.
The acquisition of TNS’ caller authentication assets is expected to create about $60 million in revenue for Neustar in 2016.
Neustar plans to purchase TNS’ assets for approximately $220 million in cash, but that will be reduced to roughly $173 million after taking into account the transaction’s tax benefits.
Paul Lalljie, Neustar’s chief financial officer, said the assets “will generate estimated tax benefits of approximately $47 million, significantly improving the valuation profile of the deal.”
Neustar says the acquisition will allow it to compete in the call authentication market for mobile, broadband and wireless services, which include subscriber data storage, database management, caller identification and verification services.
The transaction is expected to close in the fourth quarter of 2015, pending Hart-Scott-Rodino approval.