VeriSign Extends Leadership in Mobile Content Infrastructure with Acquisition of m-Qube
Intelligent Services Platform Provides End-To-End Solution for Mobile Media Management
VeriSign today (20 March 2006) announced it has signed a definitive agreement to acquire m-Qube, a leading mobile channel enabler that helps companies develop, deliver and bill for mobile content, applications and messaging services.
The acquisition of m-Qube complements the recently acquired 3united and Kontiki, extending VeriSign's digital content platform to enable carriers, Internet portals, media companies and consumer brands to provide anytime, anywhere, any device delivery of mobile and broadband services.
m-Qube is the recognized market leader in delivering premium messaging and content services that can reach more than 200 million wireless subscribers in North America. The company's intelligent application platform powers hundreds of mobile storefronts and marketing campaigns for customers including Sony Pictures, CBS, Major League Baseball Advanced Media, Warner Music Group, Reuters, GQ, Virgin Mobile Canada and Telus Mobility.
“VeriSign is combining its world-class expertise, applications and infrastructure to make content convergence over any network and any device a reality. m-Qube will increase our leadership and expand our services in this emerging category,” said Vernon Irvin, executive vice president and general manager, VeriSign Communications Services.
“We are excited that m-Qube's expertise, services and relationships will now be part of VeriSign, an established provider of secure, reliable and globally scalable content and communications services,” Jeffrey Glass, chief executive officer of m-Qube. “This combination will accelerate our customers' ability to bring a robust suite of digital content and services to the marketplace.”
Last month, VeriSign acquired 3united, a wireless applications service provider that counts SingTel, Hutchinson3G, Mobilkom/Vodafone among its customers. Earlier this month, VeriSign acquired Kontiki, which provides managed peer delivery systems for high-quality video and digital content. Leading media and network companies such as AOL, BskyB and Verizon are using the Kontiki platform to distribute on-demand multimedia services to personal computers.
m-Qube, based in Watertown, Massachusetts, is privately held with 200 employees across North America. The acquisition price is $250 million dollars net of cash. The transaction is being accounted for as a purchase transaction and is expected to close in the second quarter of 2006. VeriSign expects the transaction to be neutral to earnings for the remainder of 2006 and will provide updated financial guidance following the closing.
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