TLO LLC announced that it has reached an agreement in principle with TransUnion pursuant to which TransUnion will serve as the “stalking horse bidder” in conjunction with a court-supervised sales process to maximize value for the Company.
TLO filed a motion seeking authorization from the United States Bankruptcy Court for the Southern District of Florida in West Palm Beach (the “Court”) to conduct an auction for the Company pursuant to Section 363 of U.S. Bankruptcy Code. The motion also sets out the proposed bidding procedures for the auction. Under the proposed procedures, TransUnion will serve as the “stalking horse bidder” with a definitive asset purchase agreement to acquire TLO for $90 million in cash and $15 million in TransUnion stock, which will be filed with the Court no later than November 1, 2013. In addition, under the terms of the asset purchase agreement, TLO will retain its rights to the $40 million Hank Asher life insurance policy and related claim. The asset purchase agreement will set the floor, or minimum acceptable bid, for the auction, which is designed to achieve the highest and best offer for TLO.
The Company noted that it has previously received proposals from 11 different financial and strategic bidders, many of whom are expected to be active participants in the auction. Throughout this court-supervised sales process, TLO expects to continue to offer revolutionary technology to serve its private and public sector customers to meet their ongoing research and investigative needs in the ordinary course. The Company remains committed to supporting customers and making security of data and consumer privacy a top and unwavering priority.
The proposed bidding procedures would require interested parties to submit qualified bids to acquire the Company no later than 5:00 PM ET on November 15, 2013. Assuming qualified bids are submitted, an auction would be held on November 20, 2013. A final sale approval hearing is anticipated to take place on November 22, 2013 with the anticipated closing to occur no later than the end of the year.
The Company filed voluntary Chapter 11 petitions on May 9, 2013. Additional information about TLO is available on the company’s website at http://www.tlo.com
About: TLO (Florida, USA) is a data solutions provider specializing in custom, scalable investigative and risk management tools for due diligence, threat assessment, identity authentication, fraud prevention, and debt recovery. Used daily by thousands of organizations in the public and private sector, TLO’s core product, TLOxp, is the most powerful technology for locating, researching, and finding the connections between individuals, businesses, and assets. TLO further supports law enforcement agencies in more than 40 countries around the globe by providing, at no charge, cutting-edge technology used to identify and locate child predators.
Source: TLO Press Release