VeriSign focuses on Internet security as it divests other businesses
VeriSign Inc. says it will shed some of its business units to focus on its core Internet security services, including the technology it provides to online retailers.
The Mountain View, CA-based technology company announced last week plans to sell off between three and six of its business units, representing roughly 20% to 40% of its annual revenue of about $1.5 billion. That will allow the company to focus on its core business of securing the infrastructure of the Internet, VeriSign officials said.
“The combination of focus and disciplined execution will provide the foundation we need to generate improved shareholder returns,” said Bill Roper, CEO. “We have leadership positions in great businesses with high growth, attractive economic returns and significant barriers to entry.”
Among the businesses VeriSign will retain is the unit that supplies web sites with certificates for securing online transactions. VeriSign currently is supplying 912,000 such Secure Sockets Layer certificates to operators of 91,000 web sites. VeriSign also will retain the registry it maintains of web site names for the .com, .net and .tv domains.
Among the businesses that will be sold off are those that provide billing and content delivery services to mobile telephone companies.
VeriSign reported third quarter revenue of $377 million, of which 84% came from the United States. Net income was $19 million.
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