VeriSign Acquires iDEFENSE, Inc.
Acquisition of Leading Security Intelligence Company Expands VeriSign
Capabilities in Assisting Government Agencies and Enterprises in Responding
to Malicious Security Threats
MOUNTAIN VIEW, CA – July 14, 2005 – VeriSign, Inc. (Nasdaq:
VRSN), the leading provider of intelligent infrastructure services for
the Internet and telecommunications networks, today announced that it
has acquired Reston, VA-based security intelligence firm iDEFENSE for
approximately $40 million in cash.
iDEFENSE is a leader in providing comprehensive, actionable
intelligence regarding network-based security threats and vulnerabilities
to the world’s largest financial services firms, government agencies,
retailers and other large enterprises. The company's multi-lingual network
of more than 200 research contributors in over 30 countries offers early
and unique insight into the cyber underground and previously unknown
software vulnerabilities. The iDEFENSE research product portfolio includes
iAlert Daily Delivery and FLASH Reports, Weekly Threat Reports and Focused
Intelligence Reports that customers use to modify security infrastructure
and respond to threats on a real-time basis.
“Network perimeters are expanding to include customers,
partners and remote employees, so enterprises must leverage the most
advanced security intelligence to protect customer data and corporate
assets,” said Judy Lin, executive vice president and general manager,
VeriSign Security Services. “The acquisition of iDEFENSE expands the
VeriSign suite of managed
security services, providing customers with additional capabilities
with which to proactively protect their networks from vulnerabilities
and attacks.”
The addition of iDEFENSE will augment the comprehensive
VeriSign® Managed Security Services (MSS) offering and represents an
expansion of the company’s ability to monitor and assess security threats
in real time. VeriSign will retain the iDEFENSE employee base, and iDEFENSE
will assume the VeriSign name, continuing to market the iDEFENSE suite
of intelligence services.
“We are pleased that iDEFENSE has joined the VeriSign
family, and we look forward to providing customers of both companies
with our combined value and strength,” said John Watters, iDEFENSE CEO.
“Our iDEFENSE intelligence-gathering capabilities, coupled with the
unique intelligence VeriSign already gathers from its MSS business and
operation of core Internet technologies, will enable us to provide more
comprehensive, actionable intelligence to our customers before attacks
strike.” Watters will continue to lead the VeriSign iDEFENSE Research
team.
The acquisition is being accounted for as a purchase
transaction and has been approved by the boards of directors of both
companies. Revenue and earnings contribution from the acquisition will
not be material to the company’s 2005 financial results.
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.
For more information, contact:
VeriSign Media Relations: Brendan Lewis, brlewis@verisign.com,
650-426-4470
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 its services, including VeriSign iDEFENSE Research;
customer acceptance of the services as provided by VeriSign; the risk
that expected economies in servicing customers will not materialize;
the incurrence of unexpected costs integrating the 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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