NeuStar acquires Followap for USD 139 million
Instant-messaging provider from Haifa acquired by American provider of clearinghouse services to communications industry
NeuStar said it expects Followap to contribute more than USD 25 million to overall revenue in 2007, and for that to more than double in 2008. The company also said it does not expect the acquisition to affect earnings for 2006.
The deal expands NeuStar's platform for growth in mobile markets in the US and abroad, the company said.
Followap also provides network operators with mobile Internet access services. The acquired company will form the core of NeuStar's Next Generation Messaging group.
"Strong demand is emerging worldwide for Instant Messaging, and leading mobile network operators in Europe already depend on Followap's products to deliver IM," said Jeff Ganek, NeuStar's chairman and chief executive officer.
"By enabling IM, NeuStar will build on Followap's strengths to deliver essential infrastructure services in Europe and Asia."
Shares of NeuStar fell 23 cents to close at USD 31.79 on the New York Stock Exchange.
Avi Shauli contributed to the report
