Google Buys GIPS for $68 Million
Google announced today that they have entered into an aggreement to buy Global IP Solutions (GIPS), a Norwegian company that developed technology to enable the routing of VoIP calls. The purchase will be made by Google Acquisition Holdings Inc., a wholly owned Google subsidiary.
This will give Google ownership of a key VoIP technology, the same one used by Yahoo Instant Messenger's voice calls as well as Cisco's WebEx system. GIPS technology also powere IBM's Lotus Sametime, and is claimed by the company to be installed at over 800 million endpoints.
According to the press release, the offer price of $2.12 per share, or a total of $68.2 million, represents a premium of 142% over closing GIPS share price on January 11, the last trading day for GIPS before they announced a buyer was interested, and a premium of 27.5% over the close on May 14, 2010, the last trading day prior to Google's public announcement.
Google says that GIPS business will remain unchanged once the sale is completed, which is expected to happen by the end of August, pending shareholder approval.