Risk
5/21/2010
06:17 PM
50%
50%

Symantec To Buy VeriSign's Authentication Business For $1.28 Billion

VeriSign will refocus business on Internet infrastructure, naming services.

VeriSign, one of the best-known names in computer security, today took a step away from the security business by selling its authentication services business to Symantec for $1.28 billion.

VeriSign's authentication business, which includes the Secure Sockets Layer (SSL) encryption certification services, a managed Public Key Infrastructure (PKI) platform, and the company's ownership stake in VeriSign Japan, contributed approximately $101.9 million to VeriSign's revenues last quarter -- about 39 percent of the company's business.

Symantec's acquisition follows the $300 million purchase of encryption pioneer PGP and the $70 million purchase of GuardianEdge, which were announced simultaneously just three weeks ago.

"The security space is consolidating in a way that favors larger players that offer lots of products and services in an integrated package," said Mark McLaughlin, president and CEO of VeriSign, in an investor teleconference this afternoon. "If you want to succeed in this market, you have to have a broad range of services, as Symantec does."

"For 15 years, VeriSign has pioneered the SSL and related authentication services business," said Jim Bidzos, VeriSign founder and executive chairman. "Today Symantec is the best company to drive this business forward."

The agreement provides that Symantec will acquire the assets of VeriSign's Authentication Services business, including its ownership stake in VeriSign Japan, as well as certain brands and trademarks, such as VeriSign’s "check mark" logo.

Symantec has indicated that it expects to offer positions to most of VeriSign's authentication employees to support the business. VeriSign has agreed to support the business after the transaction's close by providing transitional services to Symantec. Following the close of the transaction, VeriSign expects to eliminate some positions that will not move to Symantec and that will not be required for its future operations. The boards of both VeriSign and Symantec have unanimously approved this transaction, which is not subject to financing contingencies or shareholder approval. The transaction is expected to close in 60 to 90 days or upon receipt of regulatory approval. Following the close of this transaction, VeriSign's remaining business will consist of its Naming Services business, which contributed approximately $162 million, or 61 percent, of the company's revenues in the quarter ended March 31, 2010.

"We will continue to focus on the growth strategies we've previously articulated for our domain name and infrastructure availability businesses," McLaughlin said. "These include leveraging our existing infrastructure capabilities for new services, expanding internationally, and pursuing new top-level domain opportunities."

"Trust and identity are key to the future of securing and managing information," Symantec said in its announcement. "VeriSign is the leading provider of digital authentication services, enabling trusted interactions within and across businesses, consumers, applications, and processes. With identity security, Symantec solutions can enable information access control, enhanced data security, and better enforcement of compliance policies."

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Dark Reading December Tech Digest
Experts weigh in on the pros and cons of end-user security training.
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-5395
Published: 2014-11-21
Multiple cross-site request forgery (CSRF) vulnerabilities in Huawei HiLink E3276 and E3236 TCPU before V200R002B470D13SP00C00 and WebUI before V100R007B100D03SP01C03, E5180s-22 before 21.270.21.00.00, and E586Bs-2 before 21.322.10.00.889 allow remote attackers to hijack the authentication of users ...

CVE-2014-7137
Published: 2014-11-21
Multiple SQL injection vulnerabilities in Dolibarr ERP/CRM before 3.6.1 allow remote authenticated users to execute arbitrary SQL commands via the (1) contactid parameter in an addcontact action, (2) ligne parameter in a swapstatut action, or (3) project_ref parameter to projet/tasks/contact.php; (4...

CVE-2014-7871
Published: 2014-11-21
SQL injection vulnerability in Open-Xchange (OX) AppSuite before 7.4.2-rev36 and 7.6.x before 7.6.0-rev23 allows remote authenticated users to execute arbitrary SQL commands via a crafted jslob API call.

CVE-2014-8090
Published: 2014-11-21
The REXML parser in Ruby 1.9.x before 1.9.3 patchlevel 551, 2.0.x before 2.0.0 patchlevel 598, and 2.1.x before 2.1.5 allows remote attackers to cause a denial of service (CPU and memory consumption) a crafted XML document containing an empty string in an entity that is used in a large number of nes...

CVE-2014-8469
Published: 2014-11-21
Cross-site scripting (XSS) vulnerability in Guests/Boots in AdminCP in Moxi9 PHPFox before 4 Beta allows remote attackers to inject arbitrary web script or HTML via the User-Agent header.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Now that the holiday season is about to begin both online and in stores, will this be yet another season of nonstop gifting to cybercriminals?