VeriSign Sells its Mobile Messaging Division to Syniverse

­VeriSign has announced that it is to sell its Messaging Business to Syniverse Holdings for cash consideration of US$175 million, subject to working capital adjustments. The business has an annual revenue run-rate of approximately $140 million over the last 12 months, and the transaction is expected to be immediately accretive to Syniverse's cash net income.

"This acquisition will benefit both global operators and subscribers," said Tony Holcombe, President and CEO, Syniverse. "As mobile messaging volumes continue to experience double-digit growth, Syniverse will have the scale, reach and capabilities needed to provide mobile operators -- large or small -- with greater vendor choice and faster time to market for the services subscribers demand."

The proposed acquisition will combine Syniverse's NEXT Advanced Messaging Hub and other messaging offerings with dour of VeriSign's operator and enterprise messaging solutions.

"Through this acquisition we will not only grow our top line revenue through new offerings that serve operators' and enterprise customers' growing need for messaging services, but will also achieve the solutions scale and reach that is needed to compete globally in an expanding messaging market," Holcombe said.

As a result of the acquisition, Syniverse will increase its global operating footprint with the integration of approximately 300 additional employees located primarily in the United States and Asia Pacific. Of those 300, more than 100 are based in India where Syniverse has a significant strategic interest, provides data clearing services to several operators and was recently awarded a contract to supply number portability services.

"Even under challenging economic conditions, we have continued to execute on our divestiture strategy through aligning with buyers with complementary strengths," said Mark McLaughlin, president and CEO of VeriSign. "We are pleased to continue making progress on our divestiture program with this latest agreement with Syniverse."

Posted to the site on 25th August 2009