Syniverse acquires VeriSign’s messaging business

TAMPA, USA: Syniverse Technologies, a provider of IT services, announced today that it has signed a definitive agreement to acquire VeriSign, Inc.’s messaging business for $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, said a press release.

“This acquisition will benefit both global operators and subscribers,” said Tony Holcombe, president and CEO, Syniverse.

He added that as mobile messaging volumes continue to experience double-digit growth, Syniverse would 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 would benefit from more messaging services and applications.

The proposed acquisition would 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: They are,

1- Inter-Carrier Gateway, which enables operators to deliver inter-carrier person-to-person SMS and MMS messages across geographies and technologies.

2- PictureMail, which 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.

3- Premium Messaging Gateway, which manages delivery of “off-portal” or third-party content to subscribers.

And, 4- Mobile Enterprise Solutions, which 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 would increase its global operating footprint with the integration of approximately 300 additional employees located primarily in the US and Asia Pacific.

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, the release added.