VeriSign to Acquire LightSurf

VeriSign, Inc. (www.verisign.com) today announced it has signed a definitive agreement to acquire Santa Cruz, California-based LightSurf for $270 million in VeriSign stock.

"LightSurf's vision and leadership with Picture/Video-Messaging and MMS end-to-end-solutions can be leveraged by VeriSign to benefit both organizations," said Philippe Kahn, Chairman of LightSurf.

LightSurf is a global leader in multimedia messaging and interoperability solutions for the wireless market. The company's industry-leading technology platform enables mobile subscribers to exchange pictures, video, and other forms of multimedia content.

Additionally, the company works closely with leading handset manufacturers such as Samsung Electronics, Motorola, Sanyo, LG International Corp, and Toshiba to develop and deploy easy to use multimedia messaging services.

"We are very excited about the strategic value and cutting edge capabilities that LightSurf adds to VeriSign's Intelligent Communications, Commerce and Content (IC3) platform," said Stratton Sclavos, Chairman and CEO of VeriSign. "LightSurf's innovative managed services and their strong record of success with carriers make them a natural fit with VeriSign." 

The acquisition will be accounted for as a purchase transaction and has been approved by both companies' boards of directors. The acquisition is anticipated to close by the end of the first quarter of 2005, and is subject to standard regulatory and other approvals.

Depending on the date of closing and other factors, 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.