NetSpend (NASDAQ: NTSP), an Austin-based financial services company backed by a bevy of private capital investors, has agreed to be acquired by TeleCommunications Systems (NYSE: TSS) for $1.4 billion. The transaction is expected to close in mid-2013. NetSpend provides general purpose, reloadable prepaid debit cards and related financial services to under-banked consumers in the United States. Venture backers TGF Management, Millennium Technology Ventures and Inter-Atlantic Advisors are finding their exits with the acquisition. Oak Investment Partners acquired a majority position in the company in 2004 before drawing down its stake in February 2012. JLL Partners invested in the company in 2008 and is its largest shareholder. The sale will provide the firm's LPs with over 5x their initial invested capital and, depending on the timing of the closing, will result in an IRR of approximately 34%.