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Verisign Enters Broadband Content Services Market with Kontiki Acquisition

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Verisign Enters Broadband Content Services Market with Kontiki Acquisition

VeriSign the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today (13 March 2006) announced it is entering the Broadband Content Services market to provide rich digital media over IP networks. VeriSign also announced that it has signed a definitive agreement to acquire Kontiki, a leading provider of managed peer delivery systems for high-quality video, software and digital content.

Kontiki's system will form the cornerstone of VeriSign's Broadband Content Services platform to enable the delivery of rich media over broadband networks to personal computers, television sets and portable devices. The broadband delivery capabilities complement VeriSign's Mobile Content Services infrastructure and expand the company's Content Services portfolio.

“In today's ‘any era' where consumers are driving demand for how, when and where content gets delivered, VeriSign is investing in building an intelligent infrastructure for operators, Internet portals, media companies and consumer brands to use to deliver content to all three screens,” said Vernon Irvin, executive vice president and general manager, VeriSign Communications Services. “Kontiki immediately enters us into the broadband content market so we can help carriers and others compete in today's digital world.”

Kontiki's secure, scalable, efficient platform, which supports legal distribution of rich digital media over IP networks, is being used by Internet portals, broadcasters and Fortune 500 companies. AOL, BSkyB, Verizon and others use the centrally managed system to deliver branded high-quality video content to desktops worldwide. The technology affords economic advantages to customers that want to securely distribute DVD and HD quality video using a system that protects content owner and distributor rights. 

“Kontiki is excited to be part of VeriSign, a trusted provider of globally scalable, reliable and secure managed services, and serve as the cornerstone of its broadband content services platform. As we combine our expertise, we will continue creating real value for our media and enterprise customers and companies,” said Todd Johnson, CEO of Kontiki.

Kontiki, based in Mountain View, CA, is privately held and has 34 employees in the United States. The acquisition price is approximately $62 million dollars. The transaction is being accounted for as a purchase transaction and is expected to close in the first quarter of 2006. The financial impact of the transaction will be disclosed following the closing.


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