Securus Technologies Inc. (Securus) confirmed yesterday that it has abandoned its plans to acquire Inmate Calling Solutions LLC (ICS).  The Department of Justice’s Antitrust Division had previously informed the companies that it had significant concerns that the merger would eliminate important competition in the market for inmate telecommunications services (ITS). 

Securus and ICS are two of the four major ITS providers in the United States.  Correctional facilities across the United States rely on specialized telecommunications companies to provide both basic phone service to inmates and the important security features the facilities require.  In addition, ITS are an important source of revenue that supports the facilities’ operations.  These services are an important lifeline between the inmates in these facilities and their loved ones. 

“Securus and ICS have a history of competing aggressively to win state and local contracts by offering better financial terms, lower calling rates, and more innovative technology and services.  This merger would have eliminated that competition, plain and simple,” said Makan Delrahim, Assistant Attorney General of the Department of Justice’s Antitrust Division.  “The companies’ decision to abandon this deal is the right outcome – correctional facilities, inmates and their friends and families will continue to benefit from the robust competition between these firms.”

“I would like to thank our colleagues at the Federal Communications Commission for their cooperation throughout this investigation,” said Assistant Attorney General Delrahim.  “In addition, we are grateful for the cooperation we forged with teams from several State Attorneys General offices during the course of our investigation.”

Securus is a Delaware corporation headquartered in Carrolton, Texas, that is owned by Platinum Equity, a venture capital firm.  Securus is one of the two largest ITS providers in the nation.

ICS is a California LLC headquartered in San Antonio, Texas, that is owned by H.I.G. Capital LLC, a venture capital firm.  It is the fourth largest ITS provider as measured by inmates served.