TNS Inc., a maker of networking products, agreed to be acquired by an investor group led by Siris Capital Group in a deal valued at about $862 million.
Siris, a private-equity firm, will pay $21 a share in cash, a 47 percent premium over the stock’s average price over the past month, according to a statement today. The companies expect the deal to close in the first quarter.
TNS, founded in 1990, supplies networking products and services to retailers, banks and telecommunications providers. Amid slowing sales, the company is changing its focus from selling older, so-called legacy networks to newer data-communication applications. TNS said it will maintain this shift as a closely held affiliate of Siris.
“We will continue our product initiatives that can either help our customers cost-effectively navigate the complexities of network evolution or create new revenue opportunities, while providing the same level of exceptional customer service that we are known for,” Henry Graham, chief executive officer of Reston, Virginia-based TNS, said in the statement.
TNS jumped 43 percent to $20.76 at the close in New York. The shares had declined 18 percent this year through yesterday.
Greenhill & Co. served as financial adviser to TNS’s board, while Gibson, Dunn & Crutcher LLP acted as its legal adviser. UBS AG and Macquarie Capital worked with New York-based Siris. Its legal adviser was Simpson Thacher & Bartlett LLP.