STERLING, Va. - NeuStar, Inc. (NYSE: NSR) , a leading provider of essential
communications services to the global communications and Internet
industry, announced today that it has entered into a definitive merger
agreement to acquire UltraDNS Corporation of Reston, Virginia, for
$61.8 million in cash, subject to customary closing conditions.
UltraDNS is a global industry leader in providing managed domain
name systems (DNS) services. It plays a key role in directing and
managing Internet traffic, enabling its thousands of customers to
intelligently and securely control and distribute that traffic, and
ensuring security, scalability and reliability of websites and e-mail.
Based on unaudited financial statements, UltraDNS' 2005 revenue
totaled $12.6 million and the company was profitable. For 2006, NeuStar
projects revenue growth for UltraDNS services in excess of 40 percent,
and expects the acquisition to be accretive by the first quarter of
2007, including the amortization of intangibles resulting from the
acquisition.
"With the acquisition of UltraDNS, NeuStar will be an even stronger
provider of essential services to the communications industry,
expanding the foundation for our continued growth and profitability,"
said Jeff Ganek, NeuStar's Chairman and CEO. "In North America,
networks already rely on NeuStar's core business to know where to
physically deliver communications destined for any telephone number. On
the Internet, all communications routed to addresses in the .biz and
.us domains are routed according to NeuStar's directory. We understand
this business, have experience managing technology and operations, and
we look forward to working closely with the UltraDNS team to continue
to seek innovative interoperability solutions for the future," Ganek
concluded.
"We are delighted to be joining forces with NeuStar," said Ben
Petro, President and CEO of UltraDNS. "NeuStar and UltraDNS are
recognized leaders in providing interoperability and security services
to the global Internet community. The heritage of UltraDNS is based on
providing security, reliability and simplified administration for
thousands of global enterprises. And we do so with top performance and
secure revenue transactions for e- businesses, low cost and high
customer retention for service providers, and massive scalability and
enhanced security for top-level domains and Internet service providers.
The combined strength of NeuStar and UltraDNS make for a solid
foundation of innovation for our customers."
On a worldwide basis, a broad range of major e-commerce customers
have chosen UltraDNS to provide their key Internet Directory services
and Internet infrastructure solutions.
"Providing service to more than 20 top-level Internet domains (TLDs)
such as .org, .info, .in, and .mobi, as well as a customer base that
exceeds 3,000, UltraDNS has established itself as the leader in
outsourced DNS resolution services," said Mark Foster, Chief Technology
Officer of NeuStar. "Our companies share established, multi-year track
records in providing essential infrastructure services, and are
consequently highly complementary in providing reliable secured
directory services on the Internet and for leading enterprises."
Rodney Joffe, Chief Technology Officer of UltraDNS added, "Today,
UltraDNS Managed Services provide unparalleled levels of DNS service,
reliability, and security to its customers. The unique structure of the
UltraDNS architecture ensures customers nearly 100 percent DNS uptime
service, while providing a fully redundant disaster recovery monitoring
and failover service with DDoS protection."
About NeuStar, Inc.
NeuStar, Inc. (NYSE: NSR) is a leading provider of essential neutral
third party clearinghouse services to the global communications and
Internet industry. Visit NeuStar online at http://www.neustar.biz/.
About UltraDNS Corporation
UltraDNS Corporation is a leading Managed DNS Service Provider,
delivering superior security, reliability and performance to
organizations that rely on DNS for their critical business processes,
applications and services. With the growth in e-commerce and the
emergence of advanced DNS-based communication and supply chain
management services, organizations now seek non-traditional approaches
to DNS. UltraDNS provides a range of global and local DNS solutions --
both managed services and custom infrastructure -- built on its unique
Directory Services Platform and proprietary, patented technologies.
Through its thousands of enterprise, service provider and TLD
infrastructure customers, UltraDNS powers the resolution of over 15
million domains around the globe. UltraDNS has offices in California,
Virginia, Arizona, Chicago and the UK. For more information please
visit http://www.ultradns.com/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release regarding the proposed merger
between NeuStar, Inc. and UltraDNS, including, without limitation,
future financial and operating results, benefits and synergies of the
merger, and any other statements regarding UltraDNS' and NeuStar,
Inc.'s future expectations, beliefs, goals or business prospects
constitute forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995. We
cannot assure that our expectations will be achieved or that any
deviations will not be material. Forward-looking statements are subject
to many assumptions, risks and uncertainties that may cause future
results to differ materially from those anticipated. More information
about potential factors that could affect our business and financial
results is included in the filings we make with the Securities and
Exchange Commission from time to time, including in NeuStar's Annual
Report on Form 10-K. All forward-looking statements are based on
information available on the date of this press release, and we
undertake no obligation to update any of the forward-looking statements
after the date of this press release.
Website: http://www.neustar.biz/
Website: http://www.ultradns.com/