Content mediation provider for Content Services
VeriSign, provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced it has signed a definitive agreement to acquire Berlin, Germany based Jamba! for approximately $273 million in cash and VeriSign stock. The acquisition is subject to German regulatory approvals and other conditions, and is expected to close by the end of the second quarter.
Jamba! is a leading provider of wireless content services in Europe. The company serves millions of wireless subscribers in nine European countries through distribution and billing relationships with carriers, including Vodafone, T-Mobile and KPN. In addition, Jamba! has worked with leading content publishers to build a downloadable library of over 50,000 individual products, including popular music, graphics, games and applications.
The acquisition is an extension of VeriSign's Communications Services Intelligent Communication, Commerce, and Content (IC3) strategy, which provides carriers with the intelligent infrastructure services they need to help their customers find, connect, secure, and transact over any network, anywhere. It also supports VeriSign Communications Services growth initiatives to expand its portfolio of wireless services and to further penetrate Tier 1 carriers and international markets.
"We are very excited about the strategic value of this acquisition," said Stratton Sclavos, chairman and CEO of VeriSign. "By joining forces with Jamba!, VeriSign gains a robust content mediation platform, relationships with 13 European carriers, sourcing arrangements with over 180 content providers, and a solid, growing customer base in a key geographical market."
By adding Jamba!'s capabilities into its existing communication services platforms, VeriSign expects to be able to offer carriers a comprehensive wireless data utility that covers all aspects of the mobile content value chain. Functionality will include content on-boarding, aggregation, formatting, mediation, and a variety of billing and payment services.
"This will be a victory for Jamba! customers, carriers and content providers," said Marc and Oliver Samwer, co-founders of Jamba! "We also look forward to leveraging VeriSign's global presence to expand our market opportunity into the Americas and Asia over time."
The acquisition will be accounted for as a purchase transaction and under the terms of the agreement, VeriSign will pay approximately $273 million consisting of 65% cash and 35% stock. VeriSign will gain approximately 300 full-time Jamba! employees.
VeriSign recently reiterated its financial guidance for the second fiscal quarter, projecting organic revenue growth in both its Communications Services Group and its Internet Services Group. Depending on the date of closing and other factors, the Jamba! acquisition may have some incremental impact to Q2 results. VeriSign plans to provide guidance for the remainder of 2004 on its Q2 earnings call, and will explicitly break out any Jamba! contribution to revenue. VeriSign expects the acquisition to generate approximately $70 million in net incremental revenue in the second half of 2004, to be neutral to its 2004 earnings per share and to be modestly accretive to 2005 earnings per share.
www.jamba.de/
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