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Verisign Sells Domain Registration Biz
October 16, 2003
Verisign on Thursday announced the sale of its consumer-facing Network Solutions domain registration unit to Pivotal Private Equity in a deal valued at $100 million.
Less than a year after relaunching the Network Solutions TLD registration brand, Verisign is exiting the business to focus on its core Internet and telco infrastructure units.
Since acquiring Network Solutions in a massive $21 billion deal in 2000, the Mountain View, Calif.-based Verisign has struggled with the domain registration side of the business. Over the years, the company has been at the receiving end of harsh customer service complaints and accusations of overly aggressive marketing, including recent backlash against the controversial SiteFinder service.
In a statement, Verisign made it clear that Thursday's cash-and-stock transaction involved only the registration unit. Verisign retains the infrastructure side of the business, which includes control of the lucrative .NET and .COM registries.
Terms of the deal call for Pivotal Private Equity to shell out $60 million in cash and a $40 million subordinated note for the registrar. Verisign retains a 15 percent stake in Network Solutions. The deal is expected to close in the fourth quarter this year.
More details at: http://www.atnewyork.com/news/article.php/3092721
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