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The Great VeriSign Garage Sale: 10 Big VeriSign Sell-Offs and Spin-Offs

By Ericka Chickowski on 2010-05-27



News that VeriSign would sell off the last of its security business to Symantec was hardly a surprise to market watchers who have seen the company gradually siphon off what it calls 'non-core' businesses to focus more on Internet infrastructure services. The casting away of these non-essential business units come as a result of a 2007 executive directive designed to please investors who were growing increasingly unhappy with VeriSign's prolific business priorities. In 2009, VeriSign claims to have recouped $765 million from the shedding of these disparate units. Here are some of the highlights among those deals made since 2007.

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Buyer: Symantec

Business Unit: Security business including Secure Sockets Layer (SSL) Certificate Services, the Public Key Infrastructure (PKI) Services, the VeriSign Trust Services and the VeriSign Identity Protection (VIP) Authentication Service, plus a stake in VeriSign Japan.

Price: $1.28 billion

Date: May 2010

Symantec views this acquisition as going hand-in-hand with its PGP and GuardianEdge buys in order to help it create what it calls the "Trusted Web."

Buyer: AT&T

Business Unit: Global Security Consulting Services

Price: Undisclosed

Date: October 2009

AT&T's buy of VeriSign's consulting unit gives the telecom better leverage in a new operating environment that had most of its adversaries already holding a security consulting business in their portfolios.

Buyer: SecureWorks

Business Unit: Managed Security Services Unit

Price: Undisclosed

Date: May 2009

MSSP giant SecureWorks picked up VeriSign's managed security services business (minus iDefense, which remains in VeriSign's hands) in a move that it says builds up SecureWorks revenue to $100 million.

Buyer: Syniverse Technologies

Business Unit: Mobile Messaging-including Inter-Carrier Gateway, PictureMail, Premium Messaging Gateway and Mobile Enterprise Solutions technologies

Price: $175 million

Date: August 2009

VeriSign investors had been especially anxious for it to get rid of its growing cadre of mobile technology business units. This deal sold off about $140 million worth of annual business to a vendor better suited to bring it to market.

Buyer: Mobile Messenger

Business Unit: mQube

Price: $19 million

Date: November 2009

A textbook fire sale, this deal saw Verisign barely recouping a fraction of the $250 million it paid for mQube when it acquired the company in 2006.

Buyer: Fox EntertainmentBusiness

Unit: JambaPrice: $387.4 million

Date: 2006/2008

Fox Entertainment bought controlling interest in the VeriSign's wholly owned mobile content subsidiary for $188 million in 2006. It snatched up the remaining 49 percent in 2008 for $199.4 million.

Buyer: Sinon Invest Holding

Business Unit: VeriSign Communication

Price: Undisclosed

Date: February 2009

Sinon purchased VeriSign's mobile applications services group in order to form the Vienna-based Mobile Messaging Solutions.

Buyer: Moreover Technologies Inc

Business Unit: Real-Time Publisher Service

Price: Undisclosed

Date: May 2009

Investors led by Paul Farrell purchased Real-Time Publisher Services and launched it back into the market as Morever Technologies, with Farrell heading it up as president.

Buyer: Globys Inc

Business Unit: Billing analytics for telecom industry

Price: Undisclosed

Date: April 2008

With funding from Trilogy Partnership and Duff Ackerman & Goodrich, executives running the analytics business group spun off the unit into an independent company called Globys.

Buyer: TNS Inc

Business Unit: Communications Services Group

Price: $230 million

Date: March 2009

TNS bolstered its telecommunications services group by acquiring the division at VeriSign that dealt in intelligent database services such as caller ID and roaming and clearing services.

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