Syniverse to acquire VeriSign's messaging business

In a strategic move to expand its mobile messaging capabilities, Syniverse Technologies has signed a definitive agreement to acquire VeriSign's messaging business for cash consideration of $175 mn, subject to working capital adjustments. The business has an annual revenue run-rate of approximately $140 mn over the last twelve months, and the transaction is expected to be immediately accredited to cash net income.

“This acquisition will benefit both global operators and subscribers,” said Tony Holcombe, president and CEO, Syniverse. “Through this acquisition we will not only grow our topline 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,” he said.