| January
10, 2005
VeriSign to Acquire LightSurf
Acquisition Will Add Picture Messaging
Suite and Enhanced Multimedia Messaging
Capabilities to VeriSign’s Digital
Content Services
MOUNTAIN VIEW, CA — January
10, 2005 — 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 will hold a teleconference
call today at 2:30 PM PDT/5:30 PM
EDT to discuss the transaction. The
call will be accessible by direct
dial at (800) 810-0924 (US) and (913)
981-4900 (International). A listen-only
live webcast will also be available
on the company's website at http://www.verisign.com
under the Investor Relations tab.
A replay of the teleconference will
be available by calling (888) 203-1112
(passcode: 709468) and international
replay at (719) 457-0820 (passcode:
709468) until January 17th.
About VeriSign
VeriSign, Inc. (Nasdaq: VRSN), operates
intelligent infrastructure services
that enable businesses and individuals
to find, connect, secure, and transact
across today’s complex global
networks. Additional news and information
about the company is available at
www.verisign.com.
About LightSurf
LightSurf is the global leader in
Open Standards MMS, Picture and Video
Messaging, and Interoperability solutions
supporting all mobile devices and
wireless networks. LightSurf's open-standards-based
services are currently deployed worldwide
with partners including Bell Canada,
Eastman Kodak, Iusacell, LG International
Corp., mmO2 plc, Motorola, Rogers
Wireless, Samsung Electronics, Sanyo,
Sprint, Telecom New Zealand and Toshiba.
Founded in 1998 by Philippe Kahn,
LightSurf is a privately-held company
headquartered in Santa Cruz, California.
For more information, contact:
VeriSign Media Relations:
Leslie Rubin, lrubin@verisign.com,
650-426-5363
VeriSign Investor Relations:
Tom McCallum, tmccallum@verisign.com,
650-426-3477
LightSurf Media Relations:
Samantha Chin, sam.chin@edelman.com,
650-429-2772
Lisa Grantham, lisa.grantham@edelman.com,
650-429-2758
|
