Data-services provider TNS Inc. said Wednesday it will pay up to $112.5 million for Cequint Inc., which sells caller-ID goods and services to mobile phone operators.
TNS said the acquisition will slightly reduce 2010 adjusted earnings but be neutral within a year. It will add $2 million to revenue for the rest of this year, TNS said.
The company is seeking to amend its senior secured credit facility to change rules in order to permit the acquisition and buy back shares. TNS also said it is exercising a feature in the loan to raise an additional $50 million to complete the acquisition.
TNS, which provides payment services for retailers, banks and other companies, said it will pay $50 million in cash and stock upfront, and up to another $62.5 million in cash if privately held Cequint hits profit targets through May 2014.
The deal is subject to TNS amending its senior credit facility and is expected to close early in the fourth quarter.
The upfront payment includes $46.7 million in cash and $3.3 million in stock for some executives of Seattle-based Cequint. The deal was approved by the boards of both companies.
Shares of Reston, Va.-based TNS rose 21 cents to close at $15.75.
