VeriSign Acquires LightSurf 609177

VeriSign acquires LightSurf for $270 million in VeriSign stock

January 10, 2005

2 Min Read

MOUNTAIN VIEW, Calif. -- VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced it has signed a definitive agreement to acquire Santa Cruz, California-based LightSurf for $270 million in VeriSign stock.

LightSurf is a global leader in multimedia messaging and interoperability solutions for the wireless market. The company’s industry-leading technology platform enables mobile subscribers to exchange pictures, video, and other forms of multimedia content. LightSurf supports a broad range of mobile devices and wireless networks, and its services are currently being used by millions of subscribers worldwide. Operators and service providers offering the LightSurf solution today include Sprint, Bell Mobility, Kodak, mm02, Rogers Wireless, Microcell, Telecom New Zealand, Iusacell, and Qwest. Additionally, the company works closely with leading handset manufacturers such as Samsung Electronics, Motorola, Sanyo, LG International Corp, and Toshiba to develop and deploy easy to use multimedia messaging services.

“We are very excited about the strategic value and cutting edge capabilities that LightSurf adds to VeriSign’s Intelligent Communications, Commerce and Content (IC3) platform,” said Stratton Sclavos, Chairman and CEO of VeriSign. “LightSurf’s innovative managed services and their strong record of success with carriers make them a natural fit with VeriSign.”

By adding LightSurf’s capabilities into its existing communication services platforms, VeriSign expects to offer carriers a comprehensive wireless data utility that covers all aspects of the mobile content value chain. Functionality will include picture messaging, multimedia messaging services, and Inter-carrier messaging and interoperability.

"LightSurf's vision and leadership with Picture/Video-Messaging and MMS end-to-end-solutions can be leveraged by VeriSign to benefit both organizations," said Philippe Kahn, Chairman of LightSurf. "LightSurf will continue to offer an unparalleled range of wireless data and mobile content services to our customers -- with the security, interoperability, and global availability that people have come to associate with the VeriSign name."

The acquisition will be accounted for as a purchase transaction and has been approved by both companies’ boards of directors. The acquisition is anticipated to close by the end of the first quarter of 2005, and is subject to standard regulatory and other approvals. Depending on the date of closing and other factors, VeriSign expects the acquisition to generate at least $30 million in incremental revenues for the remaining period of 2005, to be neutral to 2005 earnings per share and to be modestly accretive to 2006 earnings per share. VeriSign will gain approximately 250 full-time LightSurf employees in Santa Cruz, California and Bangalore, India.

VeriSign Inc.

LightSurf Technologies Inc.

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