VeriSign acquires wireless services provider Jamba

VeriSign Inc. has agreed to acquire Jamba AG, a Berlin, Germany-based wireless content and services provider, for US$273 million in cash and stock, VeriSign said Monday.

The acquisition is expected to close by the end of June and is subject to German regulatory approvals,VeriSign said in a statement.

Jamba will be integrated into VeriSign’s Communications Services group, which provides network, database, billing and content services to thousands of wireless and wireline telecommunications, said Stratton Sclavos, chairman and chief executive officer of VeriSign. A majority of VeriSign’s customers are in the U.S., including AT&T Wireless Services Inc. and SBC Communications Inc.

Jamba’s acquisition is part of VeriSign’s growth strategy in Europe, Sclavos said. The German company currently provides content distribution and billing services to 13 wireless carriers in nine European countries, including U.K.-based Vodafone Group PLC, Germany’s T-Mobile International AG and the Netherlands’ KPN NV.

Jamba has amassed a database of more than 50,000 downloadable songs, graphics, games and applications, which are distributed to European cellular phone users through 180 content publishers, Sclavos said. “Jamba provides over 80 per cent of the downloadable music and graphics for the Vodafone Live service,” he said, adding that digital-content downloading was heating up as an industry.

Of the US$273 million, VeriSign will pay to Jamba 65 per cent in cash and 35 per cent in stock. Approximately 300 Jamba employees will join VeriSign as part of the transaction.

VeriSign stock (VRSN) closed Monday up 3.4 per cent at US$18.35 on the Nasdaq stock exchange. In after-hours trading, it was down 2.5 per cent at US$17.90, according to information from Inet ATS Inc.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Stemming the tide of cybercrime

By: Derek Manky Technology continues to play a significant role in accelerating...

Power through a work-from-anywhere lifestyle with the LG gram

“The right tool for the right job” is an old adage...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now