VeriSign sees divestitures complete by 2009

BANGALORE (Reuters) - VeriSign Inc's (VRSN.O) interim chief executive said he was confident the divestitures of its non-core units would be completed this year.

The sale of the rest of its divestitures would fetch an amount "in the very low hundreds of millions (of dollars)," said James Bidzos, the founder of VeriSign and interim CEO, in an interview with Reuters.

The Internet security and naming services company had embarked, in 2007, on a plan to sell its slower-growing units so that it could focus on its core businesses and become a leaner and more profitable company.

"By 2009 we will, in fact, complete them," Bidzos said. "I have reason to be optimistic. All of our efforts are paying off."

In March, the company said it would sell one of its biggest bundles, communication services, to TNS (TNS.N) for $230 million. Last year, it sold its stake in mobile content provider Jamba to News Corp (NWSA.O) for $200 million.

VeriSign has sold 10 of the 13 such units and made $540 million so far from the sales.

The company has signed a letter of intent for a part of its security bundle and is in discussions with two buyers for another part. It has decided to retain the third part of the security bundle.

VeriSign is also making progress on the sale of its messaging bundle, Bidzos said.

The company is now armed with $1.29 billion in cash, Bidzos said.

VeriSign would consider making share buybacks with the cash in the future and might also make small acquisitions, which would not impact its cash, Bidzos said.

Possible acquisitions would be the result of a "buy versus make" decision," he said.

"We're not looking to grow revenue through acquisitions. Small acquisitions will be used to buy technology rather than make it," Bidzos said.

Mountain View, California-based VeriSign has made 47 acquisitions between 2000 and 2006, Bidzos said.

(Editing by Jarshad Kakkrakandy)