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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 23, 1998
Date of Report (Date of earliest event reported)
TRANSACTION NETWORK SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-23856 54-1555332
(State of other jurisdiction (Commission (IRS Employer
of incorporation or organization) File No.) Identification No.)
1939 Roland Clarke Place, Reston, Virginia 20191
(Address of principal executive offices and zip code)
(703) 453-8300
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On July 23, 1998, Transaction Network Services, Inc. (the "Company") sold
certain assets which comprised the Company's automated teller machines
transaction processing business (the "Business") to Money Access Service Inc.
("MAS"), a Delaware corporation. MAS is a wholly-owned subsidiary of
Electronic Payment Systems, Inc. ("EPS"), a customer of the Company. The
assets sold to MAS were acquired by the Company from SunTech Processing
Systems, L.L.C ("SunTech"), a Texas limited liability company, on February
27, 1998, and had been held on the Company's books as an asset held for sale.
The assets were acquired by the Company in conjunction with the acquisition
of SunTech's business of developing payment systems technology for automated
teller machines. The consideration received after arm's-length negotiations
was $6 million in cash. In addition, the Company retained the right to
certain equipment and accounts receivable of the Business. The terms of the
acquisition also included: (a) a software license whereby the Company was
granted a non-exclusive, perpetual right to use certain software associated
with the Business at locations outside the United States; and (b) an
agreement with EPS whereby EPS committed, under certain circumstances, to
purchase certain modems from the Company during a three year period.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
TRANSACTION NETWORK SERVICES, INC.
Dated: August 7, 1998 By: /s/Thaddeus G. Weed
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Thaddeus G. Weed
Chief Financial Officer & Treasurer
