VeriSign is selling its Network Solutions business, which provides internet domain name registrations, for approximately $100m.
The company purchased Network Solutions in 2000. The registrar business, which offers services such as business e-mail, websites, hosting and Web presence, will go to Pivotal Private Equity.
VeriSign will retain the registry business, which provides the backbone for the .com and .net domain names. It recently renamed the registry business VeriSign Naming and Directory Services and intends to keep that part of the business as part of its Internet Services Group. The Internet Services Group also provides authentication and e-commerce services for companies and websites.
The company will receive $60m in cash and $40m in senior subordinated notes for Network Solutions, while still retaining a 15% equity stake. The deal is expected to close in the fourth quarter of this year and is subject to certain closing conditions.
Pivotal Private Equity, a unit of investment and development firm Pivotal Group, intends to broaden Network Solutions' product portfolio and build new distribution channels.
Representatives for the companies were not immediately available for comment.
Scarlet Pruitt writes for IDG News Service