Acquiring Kontiki to Anchor New Offerings
MOUNTAIN VIEW, Calif., March 13 -- 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.
VeriSign, Inc., 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.
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.
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.