VeriSign restructuring close to finish line

The October sale of VeriSign Inc.'s Global Security Consulting Services business unit was the latest in the restructuring plan undertaken two years ago by the IT security company.

The October sale of VeriSign Inc.’s Global Security Consulting Services business unit was the latest move in the restructuring plan started two years ago by the information technology security company.

The plan, announced in 2007, is intended to raise some cash — analysts estimate the sale of about 13 units when complete will yield about $750 million — and let the company concentrate on those markets where it excels: identity and authentication services, online security, domain name services, and Internet infrastructure.

Recent assets that VeriSign has sold, according to the company’s annual financial statements, include:

  • August 2009: Messaging business to mobile specialist Syniverse for $175 million.
  • July 2009: Managed Security Services to SecureWorks Inc. for an estimated $45 million.
  • May 2009: Real-Time Publisher Services business to Paul Farrell Investor Group for an undisclosed amount.
  • March 2009: Communication Services Group to TNS Inc. for $230 million.
  • February 2009: EMEA Mobile Media, including 3united Mobile Solutions, to Sinon Invest Holding for $7.8 million.
  • December 2008: Post-pay business to wireless telecommunications carriers for $28.3 million.
  • October 2008: Minority interest in mobile content provider Jamba/Jamster Joint Ventures to News Corp. for $199.4 million.
  • October 2008: Communications Consulting business, including the inCode Telecom Group business, for $700,000.
  • April 2008: Digital Brand Management Services business to Melbourne IT for $50.4 million.
  • April 2008: Content Delivery Network business, including Kontiki video content technology, to MK Capital for $1 million.
  • March 2008: Self-Care and Analytics business, including CallVision, to Globys for $14.2 million.
  • December 2007: Retail Data Solutions business for $10.2 million.
  • September 2007: Jamba Service insurance business for $12.8 million.
  • January 2007: Controlling interest in Jamba/Jamster to News Corp. for $192 million.

And VeriSign is looking to unload more business. According to the company's Securities and Exchange Commission filings submitted in March, VeriSign plans to sell its Enterprise Security Services, which offers IT security solution design, deployment and management. The division includes iDefense Security Intelligence Services, Intelligent Content Portal Services and International Clearing business.

The last big unit remaining on the auction block is VeriSign’s mobile channel enabler, the M-Qube unit. After its sale, VeriSign would have sold various units for a total of $750 million. But that still puts the company behind financially, said Thomas Rasmussen of 451 Group. “Although we have to give the Mountain View, California-based Internet infrastructure services provider credit for successfully divesting nine large units of its business in about a year during the worst economic period in decades, we nonetheless can’t help but note that the vendor came out deeply underwater on its holdings.”

Between 2004 and 2006, VeriSign paid close to $1.3 billion for the approximately 20 businesses that comprise recent sales, he said.

However, the strategy might be paying off. In September, VeriSign won a sole-source award from the Health and Human Services Department to provide managed public-key infrastructure and digital certificate services for the Nationwide Health Information Network. VeriSign was the only provider deemed capable of supplying all the required services for secure, encrypted transmission of electronic medical data on the network, HHS said.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.