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VeriSign To Acquire GeoTrust.
2006-05-17, HostMan.biz VeriSign, Inc. announced it has entered into a definitive agreement to purchase Needham, MA-based GeoTrust, Inc., a leading supplier of SSL and other solutions to secure e-business transactions, for approximately $125 million in cash. The acquisition is subject to regulatory approvals and other conditions and is expected to close in the second half of this year. The acquisition of GeoTrust extends VeriSign's mission to enable and protect all forms of networked interactions, and addresses the needs of an evolving SSL market. GeoTrust's well developed channel of more than 9,000 direct resellers in more than 140 countries will complement VeriSign's direct-sales SSL business, currently serving more than 3,000 enterprises worldwide. "The acquisition of GeoTrust improves VeriSign's ability to serve the reseller channel market with technologies and services that are specifically tailored to their needs," said Judy Lin, executive vice president and general manager, VeriSign Security Services. "The successful channel business GeoTrust has built will benefit from our infrastructure and additional products. We look forward to leveraging the GeoTrust channel, technology and brand to expand on our existing SSL offerings." "As the market for SSL continues to grow among organizations of all sizes, VeriSign recognizes the importance of a strong reseller channel to reach a broader range of customers," said Neal Creighton, GeoTrust CEO. "GeoTrust customers and resellers are sure to benefit from VeriSign's heritage in providing SSL and other network security solutions, as well as its global support network." The acquisition will be accounted for as a purchase transaction and is expected to be accretive to earnings per share in 2007. Additional financial information will be provided following the closing of the transaction. |
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