TPI employees to invest $25m in new owner ISG

Michael Connors' acquisition vehicle Information Services Group (ISG) has revealed more details of its $280m buyout of outsourcing specialist TPI.

More than 100 TPI employees are to invest $25m in ISG stock once the deal has closed, and ISG also intends to repurchase up to $40m of its stock. The deal, expected to be completed in the last quarter of 2007, has been given the green light by ISG's board and is now awaiting shareholder approval.

ISG's chairman and CEO Michael Connors said: “This investment represents a strong endorsement of the growth prospects and strategy of TPI and ISG and aligns our interests with stockholders. We look forward to establishing a strong platform to build a world class information services company.”

Houston-based TPI, which provides data, consultancy and other services on outsourcing strategies, is the first acquisition for ISG since it raised $258m in its initial public offering earlier this year.

Connors was formerly head of the media measurement arm of VNU (now the Nielsen Company), which he left in 2005.

TPI's first quarter results showed revenue up 13% to $43.4m, from $38.4m in the same period last year. Net income was $1m, up from a loss of $186,000 in the same period last year. The firm's president and CEO Ed Glotzbach said TPI experienced strong demand, particularly in Europe.

Author: Robert Bain

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