Google is set to complete the acquisition of Global IP Solutions.
Internet giant Google and Norwegian Global IP Solutions (GIPS) announced that they have entered into a transaction agreement under which Google Acquisition Holdings, a wholly owned…
Google is set to complete the acquisition of Global IP Solutions.
Internet giant Google and Norwegian Global IP Solutions (GIPS) announced that they have entered into a transaction agreement under which Google Acquisition Holdings, a wholly owned subsidiary of Google, will make a recommended voluntary public cash offer to acquire all the issued and to be issued shares of GIPS for NKr13 (US$2.12) in cash per share, an aggregate price of approximately NKr421m (US$68.2m).
The offer was made on May 17 2010 and GIPS’s board of directors have already made a resolution to recommend the offer.
Google will finance the acquisition from its existing cash resources.
Google engineering director Rian Liebenberg said, “The Web is evolving quickly as a development platform, and real-time video and audio communication over the Internet are becoming important new tools for users. GIPS’s technology provides high quality, real-time audio and video over an IP network, and we’re looking forward to working with the GIPS team at Google to continue innovating for the Web platform.”
Google states that the offer price presents a premium of 142.1% over the closing share price of GIPS shares on January 11 2010, the last trading day prior to GIPS making a public announcement of strategic interest from a potential buyer. The internet giant adds that the completion of the offer is now subject to acceptance by 90% of GIPS shareholders. The acquisition is not currently expected to require the approval of competition authorities.
Following deal closure, Google aims to delist GIPS from the Oslo Stock Exchange and begin proceedings to buy out any minority shareholdings in the company.
Google is advised in the transaction by SEB Enskilda, with GIPS advised by ABG Sundal Collier Norge ASA.
GIPS provides voice and video processing in IP communications, serving application developers, service providers and network equipment vendors. The company is headquartered in San Francisco, USA, with offices in Stockholm, Hong Kong and Boston.