Tranzact Switches Sponsors

Veronis Suhler Stevenson has completed its acquisition of Tranzact from Halyard Capital, for $185 million in cash. The deal represents a 12x ROI for Halyard, which helped form the company back in 2003. Tranzact is a Fort Lee, N.J.-based provider of customer acquisition marketing services for the financial services, media and telecom markets. Company management will retain an ownership position, following the VSS acquisition.

Halyard Capital, a New York-based private equity firm, announced today that it has closed on the sale of MG LLC dba TRANZACT (“TRANZACT” or the “company”) to a newly formed portfolio company of Veronis Suhler Stevenson (“VSS”) for $185 million.

TRANZACT, based in Fort Lee, New Jersey, is the nation's premier provider of outsourced customer acquisition solutions to Fortune 1000 brands. Addressing the demands of these brands to efficiently and profitably acquire high-quality customers, TRANZACT currently serves clients in the financial services and communications industries, particularly in the sub-sectors of insurance, credit cards, mortgage, telecommunications, entertainment, publishing and satellite.

“Our partnership with TRANZACT's outstanding management team has been a tremendous success,” said Bruce Eatroff, Partner of Halyard Capital. “The organization executed on its well-defined growth strategy to become the preeminent provider of end-to-end direct marketing solutions. Our work together has provided Halyard's investors an excellent return while also positioning TRANZACT for continued success in the future.”

Halyard Capital partnered with Marc Byron and David Graf in May 2003 to form TRANZACT through the purchase of Mosaic Performance Solutions USA, a division of the Toronto-based Mosaic Group. Since then, Halyard has remained the majority owner and sole institutional investor in the business, working with management to grow the company into a recognized leader in performance- based direct marketing both organically and through acquisitions. Revenue grew 40% on a compounded annual basis over the 52-month investment period.

The sale of TRANZACT represents the 13th realization from Halyard Capital Fund I. The sale has generated a 12 times return on Halyard's original investment and an internal rate of return in excess of 85%.

About Halyard Capital

Halyard Capital is a New York-based private equity firm with over $500 million of capital under management, focused on investing opportunities within the media, communications and business services industries. Halyard specializes in middle-market leveraged buyouts and growth equity investments. The firm has extensive experience and a proven track record within each of these sectors with recent investments including ImpreMedia, Halyard Education Partners, WMI, Engauge, Presidio Networks, TCP Communications and NETGEAR. Halyard invests in and works closely with exceptional management teams in companies with defensible market positions and franchise characteristics which generate strong cash flow and operate in attractive growth markets. The firm's investment funds will commit up to $40 million to individual portfolio companies with a focus on investments of between $15 million and $40 million. Halyard has the ability to complete larger transactions utilizing our network of investment partners. Additional information regarding Halyard's strategy, principals and investments can be found at .


Based in Fort Lee, NJ, TRANZACT is the leader in providing end-to-end technology-driven customer acquisition solutions to the financial services and media and telecommunications sectors. TRANZACT leverages and integrates sophisticated digital, data and direct marketing solutions to deliver qualified leads, fully provisioned sales, and robust customer management systems to brands seeking to acquire and manage large numbers of customers. Additional information about TRANZACT can be found at