VeriSign Inc. has expanded its radio frequency identification (RFID) capabilities with the acquisition of R4 Global Solutions, a consultant and integration firm that has worked with such companies as Levi Strauss on RFID projects. VeriSign paid $15 million in cash for the company.
“The use of RFID and other data sources is quickly changing the supply chain as companies realize the increased value of real-time visibility from their trading networks,” said Mark McLaughlin, senior vice president and general manager of VeriSign’s Naming and Directory Services. “Adding solution consulting capabilities to VeriSign’s Intelligent Supply Chain Services will enable us to work closely with leading companies to deliver the greatest benefit from the coordination and sharing of data.”
VeriSign, which is best known for managing Internet domain names, will also manage the Electronic Product Code (EPC) Object Naming Service (ONS) root directory. According to Brian Matthews, vice president of VeriSign Directory Services, several of the company's other divisions have also added consulting services, so this move was a natural one for the company.
"We wanted to take a more proactive stance in the RFID market," said Brian Matthews, vice president of VeriSign Directory Services. "Building out that capability would have been difficult, because RFID talent is fairly sought after right now."
R4 president and CEO Jeff Richards will become a director in VeriSign's intelligent supply chain services business, reporting to Matthews. R4 has operations in San Francisco, Dallas, Boston and Atlanta, and all 26 of the company's full-time employees will remain with VeriSign.
"From a customer and market standpoint, we will have global capabilities, and the financial strength of VeriSign," said Richard, who emphasized that the move would be a positive development for R4's existing customers. "We're not a large company, and that has proven to be a challenge in the past, because many of our customers are global companies."
The deal closed on May 18, and is expected to be neutral to VeriSign's earnings per share for 2005. It will be accounted for as a purchase transaction.
