Google to pay $US68m for Global IP Solutions

Stuart Corner
Tuesday, 18 May 2010 20:05

IT Industry - Strategy

Google is buying Global IP Solutions, a company whose technology delivers high quality, real-time audio and video over IP networks, for $US68.2m: a move that is certain to mean Google getting further into the IP telephony and video calling space.

Google has not commented on the deal but Global IP Solutions CEO, Emerick Woods, said: "We join Google with a shared vision to transform and accelerate IP communications'¦With Google's global reach, scale and widely recognised leadership, we are confident that our existing customers will continue to be fully supported while we continue to enhance and extend our products and technology at Google."

Global IP Solutions claims to produce "the world's most widely deployed technology for processing real-time voice and video over IP." It says that its software is deployed in over 800 million end-points.

"GIPS enables service providers, applications developers and hardware manufacturers to differentiate their products to reduce churn and increase customer satisfaction."

The company claims to have been the first to bring video chat to Android phones. It provides video chat technology for the iPhone that enables developers to produce videoconferencing applications. It supports Yahoo! Messenger's video calling and has been licensed by Citrix to provide desktop videoconferencing.

Global IP Solutions is presently listed on the Oslo Stock Exchange, an the offer price represents a premium of 142.1 percent over the closing share price of GIPS stock on January 11 2010, the last trading day prior to GIPS making a public announcement of strategic interest from a potential buyer, and a premium of 27.5 percent compared to the closing share price on 14 May, 2010, the last trading day prior to Google's announcement.

The board has recommended acceptance of Google's offer and GIPS shareholders, including Kistefos Venture Capital AS and Kistefos Venture Capital II DA, that hold about 50 percent of shares between have said they intend to accept the offer.