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Services Expertise and Key Customer Relationships Will Help Drive RFID and related Solutions for the next Generation Supply Chain
MOUNTAIN VIEW, CA, May 18, 2005 - VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced the acquisition of R4 Global Solutions, a leading provider of solution consulting services for companies evolving their supply chains with the implementation of RFID, Electronic Product Codes(EPC), and other data sources. VeriSign purchased R4 Global Solutions for $15 million in cash.
“The use of RFID and other data sources is quickly changing the supply chain as companies realize the increased value of real-time visibility from their trading networks,” said Mark McLaughlin, senior vice president and general manager of VeriSign’s Naming and Directory Services. “Adding solution consulting capabilities to VeriSign’s Intelligent Supply Chain Services will enable us to work closely with leading companies to deliver the greatest benefit from the coordination and sharing of data.”
VeriSign provides intelligent infrastructure services that enable and secure interactions in an increasingly networked, global supply chain. Companies at the forefront of RFID adoption are shifting from simply complying with industry mandates, to a strategic focus on business process improvements enabled through greater collaboration and enhanced visibility. The acquisition of R4 Global Solutions positions VeriSign with an increased set of key customer relationships and services capabilities in this emerging market Their projects for customers such as Levi Strauss & Co., McKesson, and Land O'Lakes, span from RFID enablement, to more sophisticated networking scenarios such as Cross-Docking, Cold Chain and ePedigree.
"The Internet has radically changed the way business is conducted, and it will continue to do so. Over the next decade, more companies will use the Internet to connect to physical assets, products, and devices. This trend, which Forrester calls the extended Internet (X Internet), will help companies boost regulatory compliance, increase customer loyalty, and drive up margins," Forrester principal analyst, Christine Overby, stated in her March, 2005 report RFID: The Complete Guide.
The acquisition closed today and is expected to be neutral to VeriSign’s earnings per share for 2005 and will be accounted for as a purchase transaction. R4 Global has 26 full-time employees and offices in San Francisco, Dallas, Boston and Atlanta.
About VeriSign
VeriSign, Inc. 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 http://www.verisign.com.
For more information, contact:
VeriSign Media Relations: Patrick Burns, pburns@verisign.com,
703-948-4471
VeriSign Investor Relations: Tom McCallum, tmccallum@verisign.com,
650-426-3744
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, including the RFID or EPC Network Services; 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 R4 Global Solutions’ assets; 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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