Halyard sells Tranzact to Veronis Suhler Stevenson for $185 million

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Private equity firm Halyard Capital has entered into a definitive agreement to sell direct marketing firm Tranzact for $185 million to a newly formed portfolio company of Veronis Suhler Stevenson.

Halyard formed Tranzact in partnership with Marc Byron and David Graf in May 2003 and developed it over the past four years. Halyard has remained the majority owner and sole institutional investor in the business. Byron and Graf will continue to be major shareholders in the business.

Tranzact provides outsourced customer acquisition tools for clients in the financial services and communications industries, particularly in the sub-sectors of insurance, credit cards, mortgage, telecommunications, entertainment, publishing and satellite.

The sale will generate a 12-times return on Halyard's original investment and a rate of return in excess of 85 percent.

Tranzact was advised in the transaction by BMO Capital Markets and received legal counsel from Paul, Weiss. The acquisition is being financed by committed senior bank debt from BMO Capital Markets, Bank of Ireland and CIT Financial Group. The transaction is scheduled to close later this month.

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