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Press Release |
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VeriSign To Acquire GeoTrust
Acquisition Complements VeriSign’s Direct-Sales SSL Presence With
Well Developed Reseller Channel
MOUNTAIN VIEW, CA – May 17, 2006 – VeriSign, Inc. (Nasdaq:
VRSN), the leading provider of intelligent infrastructure services for
the Internet and telecommunications networks, today announced it has
entered into a definitive agreement to purchase Needham, MA-based GeoTrust,
Inc., a leading supplier of SSL and other solutions to secure e-business
transactions, for approximately $125 million in cash. The acquisition
is subject to regulatory approvals and other conditions and is expected
to close in the second half of this year.
The acquisition of GeoTrust extends VeriSign’s mission
to enable and protect all forms of networked interactions, and addresses
the needs of an evolving SSL market. GeoTrust’s well developed channel
of more than 9,000 direct resellers in more than 140 countries will
complement VeriSign’s direct-sales SSL
business, currently serving more than 3,000 enterprises worldwide.
“The acquisition of GeoTrust improves VeriSign’s ability
to serve the reseller channel market with technologies and services
that are specifically tailored to their needs,” said Judy Lin, executive
vice president and general manager, VeriSign Security Services. “The
successful channel business GeoTrust has built will benefit from our
infrastructure and additional products. We look forward to leveraging
the GeoTrust channel, technology and brand to expand on our existing
SSL offerings.”
“As the market for SSL continues to grow among organizations
of all sizes, VeriSign recognizes the importance of a strong reseller
channel to reach a broader range of customers,” said Neal Creighton,
GeoTrust CEO. “GeoTrust customers and resellers are sure to benefit
from VeriSign’s heritage in providing SSL and other network security
solutions, as well as its global support network.”
The acquisition will be accounted for as a purchase
transaction and is expected to be accretive to earnings per share in
2007. Additional financial information will be provided following the
closing of the transaction.
For more information on VeriSign SSL offerings, please
go to:
http://www.verisign.co.uk/products-services/security-services/ssl/index.html
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 http://www.verisign.co.uk/
For more information, contact:
Ken Saunders, Hill & Knowlton, +44 (0)20 7413 3193 / +44 (0)7830
123 145
Forward-Looking Statement
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
develop and market new products and services and customer acceptance
of any new products or services, including VeriSign's plans to install
and operate regional resolution servers; the possibility that VeriSign’s
announced new services may not result in additional customers, profits
or revenues; and increased competition and pricing pressures. 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 statements after the date of this press release.
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