ISG to Acquire TPI for $280Mn

Information Services Group (ISG), a Connecticut-headquartered acquisition company created in 2006 to build a high-growth, industry-leading information service company, has entered into an agreement to acquire TPI, a US-based sourcing advisory firm, for USD 280 million (in cash). The acquisition is subject to the approvals of ISG shareholders and customary regulatory. The transaction is likely to be completed in 4Q 2007.

Post-acquisition, ISG aims to repurchase TPI’s common stock and/or warrants worth USD 40 million, while the founder and members of the management of TPI are likely to invest about 30 percent of their proceeds from the acquisition in ISG stock at closing price.

ISG’s financial and legal advisors for the transaction were Evercore Partners and Simpson Thacher & Bartlett, respectively, whereas TPI’s financial and legal advisors were Deutsche Bank Securities and Ropes & Gray, respectively.

TPI registered revenues of USD 147 million in FY 2006 and expects its FY 2007 revenues to increase by about 15 percent. The company’s headquarters are located in Texas, the US. The company also has operations across Australia, France, Germany, India, Japan, the Netherlands, New Zealand, Singapore, Sweden, and the UK.

It serves several clients, such as AT&T, Bombardier, ChevronTexaco, Diageo, Goodyear, P&G, Pfizer, Singapore Airlines, Volvo, etc., from diversified sectors including energy, financial services, healthcare, manufacturers, pharmaceuticals, restaurants, retail, etc.