Credit Management Firm To Acquire Boca Raton-Based TLO
TLO LLC, a Boca Raton data mining company, reached an agreement in its bankruptcy case to have the credit management company TransUnion serve as its stalking horse bidder with an offer of $105 million in cash and stock.
Chief U.S. Bankruptcy Judge Paul Hyman in West Palm Beach agreed Tuesday to TLO's motion to conduct the auction with TransUnion's help.
Under an asset purchase agreement, TransUnion agreed to acquire TLO for $90 million cash and $15 million in TransUnion Holding Co. Inc. common stock. The agreement is to be filed with the court by Nov. 1.
Under the terms, TLO would retain rights to a $40 million life insurance policy on company founder Hank Asher, who died in January. Asher's children, Desiree Asher and Carly Asher Yoost, as co-chief executive officers, filed for Chapter 11 protection May 9 listing $46.6 million in assets to $110 million in liabilities.
The TransUnion agreement sets the floor for a minimum bid when TLO is auctioned. The company reported it received proposals from 11 financial and strategic bidders, and a number of them are expected to participate in the auction.
"We are pleased to reach this agreement in principle with TransUnion and to begin a court-supervised process intended to maximize the value of TLO," Asher and Yoose said in a statement.
Qualified bids must be submitted by 5 p.m. Nov. 15. Assuming competitive bidding, the auction would take place Nov. 20 at the office of Akerman Senterfitt in Fort Lauderdale, according to TLO's motion.
Sale approval would be sought at a Nov. 22 hearing, with closing by year-end.
Robert Furr and Alvin Goldstein of Furr & Cohen in Boca Raton are TLO's legal advisers. Farlie Turner & Co. LLC is its financial adviser.
TLO provides online investigative and risk management tools for due diligence, threat assessment, identity authentication, fraud prevention and debt recovery. The late founder was an industry pioneer in data mining following a short-lived stint as a cocaine smuggler in 1982.