BURLINGTON, Mass.-Lightbridge Inc. announced plans to sell its wireless technology platform and customer base to VeriSign Inc. for $17.45 million in cash.
The e-commerce company said it is off-loading its prepaid intelligent network business, a real-time voice and data usage tracking service marketed to wireless operators. VeriSign will assume some contractual liabilities under terms of the deal, which is expected to close in the second quarter.
“Although INS is a business with a robust product and significant distribution partnerships, we believe it is in the best interest of our shareholders, customers and employees to exit that business,” said Robert Donahue, Lightbridge’s chief executive officer. “We are pleased to be working with VeriSign and believe that this is a positive transaction for both companies.”
VeriSign shares were up .27 percent to $29.84 in mid-day trading Tuesday. Lightbridge shares were up 4 percent to $6.01. Both companies are traded on the Nasdaq Stock Market.
In 2004, Lightbridge sold its suite of fraud detecting software tools to India-based Subex Systems for an undisclosed amount. Lightbridge counts Cingular Wireless L.L.C. and Dobson Communications Inc. as customers.
