VeriSign, a provider of intelligent infrastructure services for Internet and telecommunications networks, is to acquire Santa Cruz, CA-based LightSurf for $270 million.
LightSurf is the developer of a multimedia messaging system for the wireless telecommunications market that enables mobile subscribers to exchange pictures, video, and other forms of multimedia content.
Operators and service providers offering the LightSurf solution include Sprint, Bell Mobility and mm02. Additionally, the company has worked closely with handset manufacturers such as Samsung Electronics, Motorola, Sanyo, LG International Corp, and Toshiba to develop and deploy multimedia messaging services.
The acquisition of the company by Verisign, which has been approved by both companies’ boards of directors, is anticipated to close by the end of the first quarter of 2005, and is subject to standard regulatory and other approvals.
VeriSign expects the acquisition to generate at least $30 million in incremental revenues for the remaining period of 2005, to be neutral to 2005 earnings per share and to be modestly accretive to 2006 earnings per share.
VeriSign will gain approximately 250 full-time LightSurf employees in Santa Cruz, California and Bangalore, India.