VeriSign Expands into Internet Payment Services with the Acquisition of Signio
Extends Company's Leadership in Providing Internet Trust Services to Online Merchants, E-Commerce Service Providers and B2B Exchanges
December 20, 1999 07:32 AM
MOUNTAIN VIEW, Calif., Dec. 20 /PRNewswire/ -- VeriSign, Inc. VRSN , the leading provider of Internet trust services, today announced that it has signed a definitive agreement to acquire privately held Signio, Inc., a leading provider of payment-services connecting online merchants, B2B exchanges, payment processors and financial institutions on the Internet. The acquisition further extends VeriSign's leadership in delivering the critical trust services needed by businesses to deploy trusted and secure Internet applications.
"With the dramatic growth in online storefronts and B2B exchanges, customers are looking to deploy trusted, reliable and frictionless payment solutions," said Stratton Sclavos, president and CEO of VeriSign. "Signio's industry-leading payment services and deep relationships with payment enablers allows us to expand our range of service offerings and to further build out the trust infrastructure for the Internet."
"VeriSign and Signio are a natural fit both in terms of our complementary services as well as in the types of markets we serve," said Philippe Courtot, Chairman and CEO of Signio. "By linking Signio's payment services with VeriSign's widely-recognized brand, sizeable customer base and global network of resellers and affiliates, we can now further accelerate market adoption of our payment platform."
VeriSign will issue approximately 5.6 million shares of VeriSign common stock for all of the issued and outstanding capital stock of Signio and will assume Signio's outstanding employee stock options. The acquisition will be accounted for as a purchase transaction.
Signio's payment platform delivers a robust, easy-to-deploy payment solution that enables a web site to transform into an online storefront in a matter of minutes. Unlike other HTTP based payment solutions, Signio's TCP/IP based service maintains data securely during the entire authorization process, providing a risk and trouble free transaction. Signio's services are designed to provide customers with significant benefits, including:
* Seamless and immediate deployment of payment services for virtually every payment type -- including credit cards, debit cards, automated clearinghouse (ACH) transactions and Internet checks * Unlimited credit card and Internet check transactions for a flat monthly * Connectivity with more payment processors than any other solution in the industry * Integrated fraud screening and risk management in partnership with eHNC * Integration with major shopping carts and leading B2C and B2B platforms including Intuit's QuickBooks and CommerceOne's MarketSite * Real-time credit card and check authorization averaging 2.2 seconds * Customizable back office, reporting tools * 24 X 7 customer service
Signio currently counts close to 2000 online merchants and over 200 resellers in its payment services network and has linked its services with leading payment processors such as EDS, FDC, Nova, Paymentech, Telecheck and Vital. The company's Payflow Pro services are integrated with B2B and B2C platforms from leading Providers including CommerceOne, Intuit, Just-in-Time Solutions, Microsoft and Trading Dynamics. Notable customers include CBS Sportsline, C/NET Store.com, FurnitureOn-Line.com, Network Solutions, Prime Sports Interactive, wine.com, and WebMD.
VeriSign plans to offer Signio's services through both its direct and indirect sales channels and will collaborate with the Signio team to further enhance the services that Signio delivers. With over 200,000 website digital certificates issued to date, a reseller channel of 3300 ISPs and Web Hosting companies and a global affiliate network, VeriSign is the worldwide leader in enabling businesses to deliver trusted transactions and communications across the Internet. The addition of payment services to VeriSign's Internet trust services portfolio dramatically enhance the company's ability to provide value-added services to merchants, B2B exchanges and e-commerce service providers.
About VeriSign
VeriSign, Inc. is the leading provider of Internet trust services -- including authentication, validation and payment -- needed by Web sites, enterprises and e-commerce service providers to conduct trusted and secure electronic commerce and communications over IP networks. VeriSign's trust services for Web sites, developers and individuals are available through www.verisign.com and through a growing number of ISPs and Web hosting companies. The company's digital certificate services for enterprises and electronic commerce service providers are available through regional account representatives, resellers, and global affiliates.
About Signio
Signio, Inc. delivers a highly scalable and reliable Internet payment platform to help businesses profit from the expanding e-commerce market. With its flat-fee monthly pricing model and growing menu of services, Signio brings affordability and convenience to the process of selling online. Signio enables seamless connectivity across the Internet, from e-commerce applications to all major back-end payment processors and quickly enables companies to authorize, process, and manage multiple payment types (including credit cards and electronic checks), multi-currency options and different payment schemes. With solutions for merchants, financial institutions, ISOs, ISPs and developers, Signio has a large number of notable customers, including CBS Sportsline, C/NET Store.com, FurnitureOn-Line.com, Network Solutions, Prime Sports Interactive, wine.com, and WebMD. Signio's investors include Intuit, Bank of America and Wells Fargo. Signio is headquartered in Redwood Shores, CA.
This press release contains forward-looking statements, including, but not limited to VeriSign's ability to incorporate Signio's services and functionality into VeriSign's products and services and market acceptance of the combined companies' solutions, that involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, both companies' limited operating histories, which makes the prediction of future operating result difficult; the rate at which the Internet and other TP networks are adopted for communications and commerce; market acceptance of digital certificates and the company's products and services in particular; competitive factors, interruptions or security breaches in the company's systems; continued market acceptance of Signio's payment connectivity services; acquisition related risks such as the ability of the company to integrate Signio's products and services, personnel and operations; VeriSign's ability to retain Signio's customers and key personnel; VeriSign's ability to market Signio's services through its sales channels successfully; and the company's ability to manage a larger company. More information about potential factors which could affect the company's financial results is included in the final prospectus for VeriSign's follow-on offering dated January 26, 1999 and the company's other reports filed with the SEC. VeriSign assumes no obligation to update the forward-looking information contained in this press release.
NOTE: VeriSign is a registered trademark exclusively licensed to VeriSign, Inc.
SOURCE VeriSign, Inc.
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