Syniverse takes mobile messaging unit off Verisigns hands for 175 million

Syniverse has announced that it will buying the messaging arm of Verisign for 175 million dollars in cash consideration. The plan is to merge the SMS and messaging technologies of Verisign with Syniverses own messaging hub, to create an operator and enterprise focused messaging service.

Who are Verisign?

Verisign began as a security company for the internet, but branched out in a lot of different directions in the early 2000′s. We’ve heard a lot from their messaging division this year, including SMS deals for social network and banking. Along with 13 other branches of Verisign that it no longer wants, the messaging division is being sold off. It is one of the last two non-core segments of the company to go.

Who are Syniverse?

Syniverse started in the 80s, and has been mainly focused on providing mobile technology to operators and businesses. It currently handles mobile voice, data, video, music and other content.

What’s the deal?

Syniverse maintains a mobile messaging service which it calls the NEXTSM Advanced Messaging Hub. It offers “enhanced” messaging for operators, like carrying SMS and MMS between different operators networks, or delivering 3rd party content. The messaging assets from Verisign (including people and technology) will be integrated into Syniverse.

What we think?

I’ve generally been a fan of Verisigns messaging division. In a market where the newest, flashiest tech often gets the most attention, Verisign has been steadily plugging away with SMS. Using the most reliable stalwart of mobile communications (outside of voice, of course) it has created a lot of great SMS-based services for enterprise, operators and even local government. I’m happy to see them reap some reward for that – 175 million dollars worth of reward.

Now, the question is – will Syniverse make good use of its acquisition? And the answer to that is that at least the messaging division will carry on working. Verisign has been looking to offload its messaging division since 2007 and return to its core business of Internet security. There is some overlap between services that Verisign provides and those that Syniverse already has – but at least most of the 300 people who work for Verisign in messaging can look forward to keeping a job.