VeriSign Inc. (VRSN) yesterday agreed to sell its messaging business to Syniverse Holdings Inc. (SVR) for $175 million. The transaction is subject to certain closing conditions and regulatory approvals.

Headquartered in Mountain View, California, VeriSign provides essential Internet infrastructure services to companies, service providers and website owners.

Tampa, Florida-based Syniverse provides wireless voice and data services for telecommunications companies worldwide. The company said that the deal will expand its mobile messaging capabilities and increase its global footprint through nearly 300 additional employees in the United States and Asia Pacific.

The messaging business has had an annual revenue run-rate of approximately $140 million over the last 12 months. With this divestiture, VeriSign will be left with only one of its thirteen businesses to divest. From November 2007 to date, the company has sold twelve non-core units for $750 million. The business which remains to be sold is Global Security Consulting.

VeriSign plans to invest proceeds from the divestitures into its core businesses (Internet Infrastructure and Identity Services). It is also using funds to buy back shares and has already repurchased shares worth $22.6 million in the first half of 2009.

Earlier this month, VeriSign reported second-quarter results in line with Street expectations. Management said macroeconomic environment remains challenging. As the Internet expands to mobile devices, we see VeriSign tapping this growth market with an array of value-added services. Moreover, we believe the company has substantial growth opportunities in the areas of intelligent supply chains, real-time publishing and interactive television.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (ARM) ArvinMeritor Sells its Wheels BusinessEarlier this month, auto parts supplier ArvinMeritor Inc. (ARM) agreed to sell its Wheels business...
2. (LNC) Lincoln Sells Asset Management UnitLincoln National Corporation (LNC) has agreed to sell its asset management unit, Delaware Investments, to...
3. (MSFT) Microsoft Sells RazorfishYesterday, Microsoft (MSFT) announced the sale of Razorfish, the digital advertising firm it received as...
4. (VRSN) VeriSign Beats, Revs In Line – sitting on a huge cash balanceYesterday, VeriSign Inc. (VRSN) reported second-quarter revenues of $257 million from continuing operations, which were...
5. (FISV) Software Sector – Industry OutlookOutlook Global markets appear to be shaking off the recent unprecedented withering of the financial...
6. (EXBD) Business Consulting Services – Industry OutlookAlthough the majority of attention regarding the current recession has focused on the consumer sector,...

Search Posts by Tag: SVR | Syniverse Holdings Inc. | VeriSign Inc. | VRSN | Internet Software & Services | Technology

RSS Feeds by Tag: SVR | Syniverse Holdings Inc. | VeriSign Inc. | VRSN | Internet Software & Services | Technology |

Other Posts by: vitalstocks | RSS Feed for this author