Syniverse to Acquire VeriSign’s Messaging Business
August 25 2009 - 7:30AM
Business Wire
In a strategic move to expand its mobile messaging capabilities,
Syniverse Technologies (NYSE: SVR) announced today that it has
signed a definitive agreement to acquire VeriSign, Inc.’s (NASDAQ:
VRSN) messaging business for cash consideration of $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 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. Ultimately, the mobile consumer will benefit
from more messaging services and applications.”
The proposed acquisition will combine Syniverse’s NEXTSM
Advanced Messaging Hub, the industry’s first comprehensive enhanced
messaging hub, and other NEXT messaging offerings with four of
VeriSign’s operator and enterprise messaging solutions:
- Inter-Carrier Gateway
enables operators to deliver inter-carrier person-to-person SMS and
MMS messages across geographies and technologies.
- PictureMail provides
state-of-the-art MMS platform with core components that include a
hosted MMS service center (MMSC) for MMS routing, handset photo
applications, a social networking interface, and photo storage and
sharing capabilities.
- Premium Messaging Gateway
manages delivery of “off-portal” or third-party content to
subscribers.
- Mobile Enterprise
Solutions enables businesses to send time- and event-based
messages or alerts via voice, text message or email to customers,
employees or partners, and allows operators to offer their
high-value customers a broader array of services, including
enterprise and mobile financial services.
“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.
The transaction is subject to customary closing conditions and
regulatory approvals. Deutsche Bank and Alston & Bird LLP
provided advisory services to Syniverse in connection with the
transaction.
Conference Call
Syniverse will host a conference call at 10:30 a.m. ET to
discuss this proposed acquisition. To participate on the call, U.S.
callers may dial toll-free 1.800.573.4840; international callers
may dial direct (+1) 617.224.4326. The passcode for the call is
59122512. The event also will be webcast live over the Internet in
listen-only mode at http://www.syniverse.com/investorevents. A
replay of the call will be available shortly after the call
concludes through Sept. 1, 2009. To access the replay, U.S. callers
may dial toll-free 1.888.286.8010; international callers may dial
direct (+1) 617.801.6888. The replay passcode is 59691759.
About Syniverse
Syniverse Technologies (NYSE:SVR) solutions allow more than 650
communications companies in over 140 countries to provide seamless
mobile services by making it possible for disparate technologies
and standards to interoperate. Syniverse's flexibility and customer
focus permit its customers to quickly react to market changes and
demands, enabling the delivery of everything from voice calls to
sophisticated data and video services wherever and whenever
subscribers need them. With more than 20 years in the industry,
Syniverse is headquartered in Tampa, Florida, U.S.A., and has
offices in major cities around the globe. Syniverse is ISO
9001:2000 certified and TL 9000 approved, adhering to the
principles of customer focus and quality improvement practices.
More information is available at www.syniverse.com.
Cautions about Forward-Looking Statements
Certain of the statements in this press release may constitute
"forward-looking statements" for purposes of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 and, as such, may involve known and unknown risks,
uncertainties and other factors which may cause the actual results’
performance or achievements of Syniverse to be materially different
from the future results’ performance or achievements expressed or
implied by such forward-looking statements. All statements other
than statements of historical fact are statements that could be
forward-looking statements. You can identify forward-looking
statements through Syniverse’s use of words such as “believe,”
“intend,” “continue,” “hopeful” and other similar words and
expressions of the future. Such forward-looking statements include,
without limitation, statements about the VeriSign transaction being
immediately accretive to Syniverse’s cash net income; the
transaction benefitting global operators and subscribers; the
expected mobile messaging volumes continuing to experience
double-digit growth in the near term; Syniverse possessing the
scale, reach and capabilities needed to provide mobile operators
with greater vendor choice and faster time to market for the
services that subscribers demand; the expected benefits to mobile
consumers; the consummation of the transaction; the expected growth
in Syniverse’s top line revenue; and Syniverse’s ability to achieve
to compete globally in an expanding messaging market. These
forward-looking statements are based upon information presently
available to Syniverse’s management and are inherently subjective,
uncertain and subject to change, due to any number of risks and
uncertainties, including, without limitation, those risks and
factors discussed in Syniverse's Annual Report on Form 10-K for the
year ended December 31, 2008, and Quarterly Reports for the
quarters ended March 31, 2009, and June 30, 2009, under the
captions "Cautionary Notice Regarding Forward-Looking Statements,"
"Risk Factors," and otherwise in Syniverse’s reports and filings
that it makes with the Securities and Exchange Commission. You
should not place undue reliance on any forward-looking statements,
since those statements speak only as of the date that they are
made. Syniverse has no obligation and does not undertake to
publicly update, revise or correct any of the forward-looking
statements after the date of this press release or after the
respective dates on which such statements otherwise are made,
whether as a result of new information, future events or otherwise,
except as otherwise may be required by law.
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