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Acquisition Adds Picture Messaging Suite and Enhanced Multimedia Messaging Capabilities to VeriSign’s Digital Content Services
MOUNTAIN VIEW, CA — April 7, 2005 — VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, announced the successful completion of its acquisition of Santa Cruz, California-based LightSurf.
VeriSign announced a definitive agreement to acquire LightSurf on January 10, 2005. Under the terms of the agreement, VeriSign paid $270 million in VeriSign, Inc. stock. The acquisition is being treated as a purchase transaction. VeriSign will maintain LightSurf offices in Bangalore, India and Santa Cruz, California, gaining approximately 300 full-time employees.
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. Operators and service providers offering the LightSurf solution today include Sprint, Bell Mobility, Kodak, Rogers Wireless, Microcell, Telecom New Zealand, Iusacell, and Qwest.
“LightSurf enhances our Intelligent Communications, Commerce and Content strategy with the addition of a world class technical team and an industry leading platform for multimedia messaging,” 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.
VeriSign expects the acquisition to generate at least $30 million in incremental revenues for the last nine months of 2005, to be neutral to 2005 earnings per share and to be modestly accretive to 2006 earnings per share.
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., 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
Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as the inability of VeriSign to successfully market the combined companies' services and customer acceptance of the combined companies' services; the risk that the expected synergies resulting from the combination will not materialize; the incurrence of unexpected costs integrating the businesses; increased competition and pricing pressures; and the inability of VeriSign to successfully develop and market new products and services and customer acceptance of any new products or services. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2004 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statement after the date of this press release.
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