March 3, 2009 (FinancialWire) -- Transaction Network Services, Inc., or TNS, (NYSE: TNS) said it has entered into a definitive agreement with VeriSign, Inc. (NASDAQ: VRSN) to acquire its Communication Services Group for $230 million in cash.

The company said it expects the transaction be accretive to TNS' 2009 earnings upon close. The boards of both companies have approved the acquisition which is scheduled to close within the next sixty days.

CSG operates an SS7 network in the United States, and is a provider of intelligent database services, such as caller ID, to the telecommunications industry. The company also provides roaming and clearing services to the wireless telecommunications industry.

TNS plans to integrate the acquired business into its Telecommunication Services division. The company said that the deal will allow it to "more effectively scale its existing SS7 network and database offerings, add a group of blue chip customers, deepen the TSD management team and significantly augment product development within TSD."

The company plans to finance the acquisition through a combination of new financing of up to $250 million and cash on hand. TNS will also be required to amend its 2007 credit facility to allow for the acquisition and new financing.

Reston, Virginia-based Transaction Network Services is an international data communications company that offers a range of networking, data communications and value added services, which it provides to retailers, banks/processors, telecommunications companies and financial markets.

The company has designed and implemented multiple data networks, each designed specifically for the transport of transaction-oriented data. The company serves customers in 28 countries.

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