May 17, 2006 -- (WEB HOST INDUSTRY REVIEW) -- Internet security infrastructure provider VeriSign (verisign.com) announced on Tuesday that it has entered into a definitive agreement to acquire SSL and security solutions provider GeoTrust (geotrust.com) for approximately $125 million in cash. The acquisition, subject to regulatory approvals, is expected to close in the second half of this year.
VeriSign says the acquisition will extend its mission to enable and protect networked interactions of every kind, and will help it to address the needs of the evolving SSL market. GeoTrust operates a channel of more than 9,000 direct resellers in more than 140 countries, which will complement VeriSign's direct-sales SSL business, which currently serves more than 3,000 enterprise customers worldwide.
"The acquisition of GeoTrust improves VeriSign's ability to serve the reseller channel market with technologies and services that are specifically tailored to their needs," says Judy Lin, executive vice president and general manager of VeriSign Security Services. "The successful channel business GeoTrust has built will benefit from our infrastructure and additional products. We look forward to leveraging the GeoTrust channel, technology and brand to expand on our existing SSL offerings."
VeriSign says the deal will be accounted for as a purchase transaction, and is expected to be accretive to earnings per share in 2007. The companies will provide more information following the close of the deal.
"As the market for SSL continues to grow among organizations of all sizes, VeriSign recognizes the importance of a strong reseller channel to reach a broader range of customers," says Neal Creighton, CEO of GeoTrust. "GeoTrust customers and resellers are sure to benefit from VeriSign's heritage in providing SSL and other network security solutions, as well as its global support network."
