Verisign puts a billion on Illuminet

Acquisition all about convergence...

Acquisition all about convergence...

Internet domain register Verisign announced it is purchasing Illuminet for $1.2bn in shares. The acquisition of the Washington-based company, which provides network services to telecoms carriers, is a strategic move anticipating the linking of voice and Internet Protocol (IP) networks, Verisign said in a statement. Stratton Sclavos, CEO of Verisign, said the two companies began talks about joint product development about four weeks ago but decided this was the best course of action. Illuminet provides network services such as caller ID and connects voice calls between major US carriers such as AT&T, Sprint and Cable & Wireless. Sclavos said his company hopes to expand its security services portfolio. Around 60 per cent of Verisign's revenue comes from its internet domain registry and 40 per cent from its security and payment services. The $1.2bn figure is based on the closing share price for Verisign on Friday of $38.30.