Information Services Group agrees to acquire sourcing advisor TPI

Information Services Group, Inc. announced that it has signed a definitive agreement to acquire TPI, the largest independent sourcing advisory firm in the world.

Under the agreement, ISG will acquire TPI for $280 million in cash. TPI's founder and members of management will invest 30 percent of their proceeds from the transaction in ISG stock at closing. In addition, ISG intends to repurchase up to $40 million of its common stock and/or warrants after closing. The acquisition is subject to customary regulatory and ISG shareholder approvals and is expected to be concluded in the fourth quarter of 2007.

Founded in 1989 and privately held, TPI created the market for fact-based advisory services, guiding large enterprises through their realignment of support functions. TPI, with 2006 revenues of $147 million and 2007 revenue growth estimated at nearly 15 percent, has generated over 20 percent compounded annual growth over the last 5 years.

TPI has performed over 2,100 engagements for its clients. Among those engagements, the company has supported over 590 outsourcing transactions, totaling approximately $250 billion in total contract value (TCV). It has advised 337 companies on the Forbes Global 2000; 33 on the top 50; and 56 on the top 100. TPI advised on over 25 percent of the TCV for global commercial outsourcing contracts awarded last year. It derives over 25 percent of its revenue from outside the United States.

"We are delighted to announce this agreement with TPI," said Michael P. Connors, Chairman & Chief Executive Officer of ISG. "This is a great company that meets every criteria we set for our first acquisition. TPI is a fast-growing business that pioneered the sourcing advisory services field and is the clear leader in an industry that is expanding rapidly worldwide; it has well-established global operations; and it has a large, blue-chip client base.

This is a data and insight driven business with outstanding people who are totally focused on improving core functions for clients."

"We will work in close partnership with TPI's leadership to sustain and accelerate its growth," Mr. Connors continued. "At the same time, TPI's financial strength, global reach and client relationships provide ISG with an ideal platform for future expansion. We intend to position the company as an essential resource for organizations dealing with the competitive challenges of a changing world such as cost pressures, emerging global markets and evolving workplace demographics. With TPI as our foundation, we will continue to aggressively expand our information-services brands, driven by the combination of proprietary data, knowledgeable people and expert service that help companies improve their market position and profitability."