|
|
|
|
Investment Banking and
Strategic Business Development
PSINet Inc. Purchase of Transaction Network Services Inc.
Acquisition Summary
| Target
Information |
| Target: |
Transaction
Network Services Inc. |
| City: |
Reston |
State: VA |
| Type of Company: |
Provider of Data
Communications and Electric Commerce Services |
| Financial Data As Of: |
6/30/99 |
Assets: $183.1 |
Net Income (LTM): $10.1 |
| Target’s Business: |
Transaction
Network Services is an international communications firm specializing in
transaction-oriented data services. Its TransXpress network transmits
credit and debit card transactions to processors, including First Data
and American Express, who in turn resell the service as a part of their
packages. The Company also offers CARD*TEL, a real-time billing
validation and fraud-control service for telecommunications customers,
as well as a secure, independent service for online financial
information exchange called FastLink. The Company’s services are
marketed in Europe, Mexico, the Middle East, South America, and the US. |
|
Acquirer Information |
| Acquirer Name: |
PSINet Inc. |
| City: |
Herndon |
State: VA |
| Type of Company: |
Commercial
Internet Service Provider |
| Financial Data As Of: |
6/30/99 |
Assets: $2,013.0 |
Net Income (LTM): <$295.6> |
| Acquirer’s Business |
PSINet offers a
variety of access services, Web-site design and hosting, e-commerce, and
security programs. PSINet has operations in 18 countries and serves
73,000 corporate customers. The Company is no longer an Internet service
provider (ISP) for individual consumers, but it does allow other
consumer-based ISPs to use its networks for a fee. IXC Communications
owns a 20% stake in PSINet in exchange for access to IXC's high-speed
digital phone lines. |
|
Transaction Information |
| Status: |
Pending |
| Announcement Date: |
8/23/99 |
Accounting: Purchase |
| Completion Date: |
Pending |
Consideration: Cash & Equity |
| Deal Value: |
$730 |
| Price/Earnings |
N/A |
| Price/Est. Earnings |
N/A |
| Price/Book Value |
7.8 |
| Comments: |
The estimated
$730 million purchase price consists of $351 million in cash and up to
7.8 million PSINet Common Shares. Transaction Network shareholders may
chose to receive cash, PSINet stock, or both. |
|
|
