VeriSign sells messaging biz to Syniverse for $175 million

Network infrastructure services provider VeriSign announced it will sell its messaging division to mobile solutions provider Syniverse Holdings for cash consideration of $175 million, subject to working capital adjustments. According to Syniverse, the acquisition will combine its Next enhanced messaging hub with VeriSign’s Inter-Carrier Gateway, PictureMail, Premium Messaging Gateway and Mobile Enterprise solutions. Syniverse will expand its global operating footprint with the addition of about 300 VeriSign employees in the U.S. and Asia Pacific, about a third of whom are headquartered in India, a market where Syniverse offers data clearing services to several operators.

VeriSign delivers about 60 percent of text and mobile message traffic in the U.S. inter-carrier market, and its networks enabled an average of roughly 932 million messages per day in the first quarter of 2009. VeriSign first discussed plans to sell its mobile messaging division as far back as late 2007--at that time, then-CEO Bill Roper said the firm plans to sell businesses where it's not the clear market leader and focus on areas where it enjoys dominance.

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