HIG captures jailhouse telecom co. for $69m

The Miami private equity firm has agreed to take private a telecommunications company that provides security-enhanced services to correctional facilities.

HIG Capital has offered $4.60 per share for T-NETIX, for a totally consideration of $69.2 million (€54.6 million).

 

T-NETIX’ stock price peaked in early 2000 above $8 per share and steadily sank until earlier this year when they neared $1 per share. Share traded yesterday at $4.20.

 

T-NETIX provides “security-enhanced call processing, call validation and billing,” for inmates, according to official company information. The company operates in more than 1,400 correctional facilities in the US and Canada.

 

HIG Capital closed its third buyout fund in 2002 on a total of $450 million in capital commitments. The firm manages separate funds and teams for a venture strategy and a buyout strategy.

 

The firm was co-founded in 1993 Sami Mneymneh, a former Blackstone Group managing director, and Tony Tamer a former consultant with Bain & Co.