VeriSign Enters Broadband Content Services
Market To Enable Intelligent Delivery Of Digital Media Over IP Networks
Acquiring Kontiki to Anchor New Offerings
MOUNTAIN VIEW, CA., March 13, 2006 – VeriSign, Inc. (Nasdaq:
VRSN), the leading provider of intelligent infrastructure services for
the Internet and telecommunications networks, today announced it is
entering the Broadband Content Services market to provide rich digital
media over IP networks. VeriSign also announced that it has signed a
definitive agreement to acquire Kontiki, a leading provider of managed
peer delivery systems for high-quality video, software and digital content.
Kontiki’s system will form the cornerstone of VeriSign’s
Broadband Content Services platform to enable the delivery of rich media
over broadband networks to personal computers, television sets and portable
devices. The broadband delivery capabilities complement VeriSign’s Mobile
Content Services infrastructure and expand the company’s Content Services
portfolio.
“In today’s ‘any era’ where consumers are driving
demand for how, when and where content gets delivered, VeriSign is investing
in building an intelligent infrastructure for operators, Internet portals,
media companies and consumer brands to use to deliver content to all
three screens,” said Vernon Irvin, executive vice president and general
manager, VeriSign Communications Services. “Kontiki immediately enters
us into the broadband content market so we can help carriers and others
compete in today’s digital world.”
Kontiki’s secure, scalable, efficient platform, which
supports legal distribution of rich digital media over IP networks,
is being used by Internet portals, broadcasters and Fortune 500 companies.
AOL, BSkyB, Verizon and others use the centrally managed system to deliver
branded high-quality video content to desktops worldwide. The technology
affords economic advantages to customers that want to securely distribute
DVD and HD quality video using a system that protects content owner
and distributor rights.
“Kontiki is excited to be part of VeriSign, a trusted
provider of globally scalable, reliable and secure managed services,
and serve as the cornerstone of its broadband content services platform.
As we combine our expertise, we will continue creating real value for
our media and enterprise customers and companies,” said Todd Johnson,
CEO of Kontiki.
Kontiki, based in Mountain View, CA, is privately
held and has 34 employees in the United States. The acquisition price
is approximately $62 million dollars. The transaction is being accounted
for as a purchase transaction and is expected to close in the first
quarter of 2006. The financial impact of the transaction will be disclosed
following the closing.
VeriSign also completed the acquisition of 3united
Mobile Solutions ag, for which it paid 55 million Euros.
###
About VeriSign
VeriSign, Inc. (Nasdaq: VRSN), operates intelligent
infrastructure services that enable and protect billions of interactions
every day across the world’s voice and data networks. Additional news
and information about the company is available at www.verisign.com.
Trademarks
VeriSign and other trademarks, service marks and logos
are registered or unregistered marks of VeriSign, Inc. and its subsidiaries
in the United States and in foreign countries. Copyright © 2006 VeriSign,
Inc. All rights reserved.
For More Information
VeriSign Media Relations: Lori Sinsley, lsinsley@verisign.com,
650-426-4716
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 the inability of VeriSign to successfully market
the combined companies' services and customer acceptance of the combined
companies' services; that the expected synergies resulting from the
combinations will not materialize; and that we may incur unexpected
costs integrating the businesses.. 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, 2005 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.
Worldwide Sites
