VeriSign to acquire multimedia messaging pioneer LightSurf

VeriSign inserted itself securely in the middle of the hottest wireless data application market this week with the $270 million acquisition of LightSurf, the multimedia messaging platform behind Sprint’s and other carriers' picture messaging and video messaging services.

The all-stock transaction also strengthens VeriSign's multimedia messaging interoperability capabilities. LightSurf has one of the leading MMS and interoperability solutions for the wireless market. The company’s technology platform enables mobile subscribers to exchange pictures, video, and other forms of multimedia content. Operators and service providers offering the LightSurf solution today include Sprint, Bell Mobility, Kodak, mm02, Rogers Wireless, Microcell, Telecom New Zealand, Iusacell, and Qwest.

LightSurf also worked with handset manufacturers such as Samsung Electronics, Motorola, Sanyo, LG International, and Toshiba to develop and deploy easy to use multimedia messaging services.

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.  VeriSign will gain approximately 250 full-time LightSurf employees in Santa Cruz, California and Bangalore, India.

  Phillippe Kahn, founder and chairman of LightSurf, also founded software language and developer toolkit company Borland in 1982, and founded mobile data synchronization company Starfish in 1994, which he sold to Motorola.