Koch Equity Development Affiliate Enters Agreement to Acquire Transaction Network Services, Positioned For Strategic Growth
WICHITA, Kan., April 14, 2021 — An affiliate of Koch Equity Development LLC, the investment and acquisition subsidiary of Koch Industries, Inc. (collectively, “Koch”), announced that it has agreed to acquire Transaction Network Services, Inc. (“TNS”) from affiliates of Siris Capital Group, LLC and TNS’ other minority equity holders. TNS provides secure, mission critical connectivity and interoperability solutions via a global managed network enabling its customers to exchange data and information and transact worldwide. Koch made its initial investment in TNS in January 2016 and this multi-step acquisition follows a similar approach to Koch’s acquisition of Infor in 2020 and Guardian Glass in 2016.
TNS, a global infrastructure-as-a-service leader, will continue to operate under the company’s current management team from its headquarters in Reston, VA. TNS is one of the premier managed network connectivity platforms with a vision to expand its reach to new high growth markets including 5G, ultra-low latency secure trading, EV charging, smart parking, digital payments and other IoT verticals, while continuing to innovate alongside customers in core service offerings supporting payments, financial services and communications. TNS is also the leading provider of mobile call management solutions through its Cequint branded offering, which enables telecommunications carriers to protect consumers with robocall/spam detection, promote reliable personal communications through enhanced caller identity services, and develop branded solutions for trusted interactions between enterprises and consumers.
TNS will help augment Koch’s continued approach to technological transformation. Koch companies have made more than $30 billion in technology-related investments in the past several years, transforming a global portfolio of businesses spanning multiple industries. The investment underscores Koch’s belief in TNS’s commitment to its customers and the company’s network management expertise leveraging TNS’ capabilities globally. Under Koch’s ownership, TNS will have a stable ownership base, and deep access to capital, allowing accelerated focus on both organic and inorganic growth opportunities.
“Today marks the beginning of an exciting new chapter for TNS, our employees and our current and future customers. As a result of this acquisition, we will be able to accelerate our mission of enabling our customers to focus on growing their businesses without worrying about the ever-increasing complexities associated with securely transmitting mission-critical, time sensitive transactional data,” said Mike Keegan, CEO of TNS. “We have enjoyed a close partnership with Koch over the past five years, and this deal is a natural progression of those years of working together. As part of Koch, we will deliver more value to our customers faster with increased investment in new technologies and current and future services which is critical to our long-term growth strategy.”
“Our acquisition of TNS follows over five years of engagement with the company, not only as an investor, but as a customer as well,” said Brett Watson, President of Koch Equity Development. “We are excited to continue supporting the company in its next phase of growth and want to thank the outstanding team at Siris as we conclude our successful partnership.” Matt Hewitt, Director at Koch Equity Development added, “As the world continues to move to a more interoperable, connected future, we are excited about the innovative work TNS is doing to serve its customers around the globe. This is an exemplary team bringing truly differentiated solutions to the marketplace.”
“This transaction recognizes the TNS team’s effort and success executing against a strategic vision to generate profitable growth,” said Robert Aquilina, Chairman of TNS and Siris Executive Partner. “My colleagues at Siris and I are proud to have been part of the journey, and we are confident the company is poised for long-term growth as part of Koch.”
Terms of the deal were not disclosed. The closing is expected to take place in the second quarter of 2021. Rothschild & Co and Credit Suisse served as financial advisors to Koch, and Jones Day served as legal advisor to Koch. Evercore and Macquarie Capital served as financial advisors to TNS, and Sidley Austin LLP served as legal advisor to TNS.
About TNS
TNS is one of the leading global providers of infrastructure-as-a-service solutions for mission-critical applications and a trusted partner to thousands of financial institutions, telecommunications providers and retailers around the world. Doing business since 1990, TNS provides services to customers in over 60 countries across the Americas, Europe and the Asia Pacific region. Across its global managed platform, TNS securely enables billions of daily telephone calls and electronic securities trade as well as over 34 billion annual payment transactions. TNS is also a leading provider of enhanced mobile caller ID and spam/robocall protection services through its subsidiary, Cequint (https://www.cequint.com/). To learn more, please visit www.tnsi.com.
About Koch Equity Development LLC (KED)
With offices in Wichita and London, KED is responsible for M&A activity across Koch Industries, Inc. and the management of a broad principal investment portfolio. Significant principal investments completed include Infor, Getty Images, MI Windows and Doors, Global Medical Response, Meredith/Time Inc., Solera Holdings Inc., and The ADT Corporation. Since 2012, KED has invested more than $30 billion of equity in principal investments and acquisitions.
About Koch Industries, Inc.
Based in Wichita, Kansas, Koch Industries, Inc. is one of the largest private companies in America, with estimated annual revenues as high as $115 billion, according to Forbes. It owns a diverse group of companies involved in refining, chemicals, and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control systems; electronics, software and data analytics; minerals; glass; automotive components; ranching; commodity trading; and investments. Since 2003, Koch companies have invested nearly $133 billion in growth and improvements. For more news and information, visit www.KOCHind.com.
About Siris
Siris is a leading private equity firm that invests primarily in mature technology and telecommunications companies with mission-critical products and services, facing industry changes or other significant transitions. Siris’ development of proprietary research to identify opportunities and its extensive collaboration with its Executive Partners are integral to its approach. Siris’ Executive Partners are experienced senior operating executives that actively participate in key aspects of the transaction lifecycle to help identify opportunities and drive strategic and operational value. Siris is based in New York and Silicon Valley and has raised nearly $6 billion in cumulative capital commitments. www.siris.com.
SOURCE Koch Equity Development