Google acquires Global IP Solutions (voice/video processing)
Companies in Relationship
Global IP Solutions
Initial Announcement Date:
Consideration: $68.2 million in cash (Source: Google press release)
Google announced plans to acquire Global IP Solutions (GIPS) for $68.2 million in cash. GIPS is a developer of real-time voice and video processing software for IP networks. The company provides high definition and super wideband voice.
The offer price is a 142% premium 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. Also, the offer price is a premium of 27.5% compared to the closing share price on May 14, 2010. The completion of the offer is subject to satisfaction or waiver of certain conditions including acceptance of the offer by the holders of at least 90% of the GIPS share capital on a fully diluted basis. Google intends to delist the company (from the Oslo Stock Exchange) after the acquisition is complete. GIPS customers will continue to receive service in accordance with their contracts after the offer is completed. After offer completion, the existing customers will be offered the opportunity to transition to new offerings developed by Google.
Google’s purchase reflects its belief in heightened demand in coming years for video conversations over IP networks, principally for mobile devices. GlobalIP has recently unveiled solutions for developers of Apple iPhone and iPad applications as well as for Google's Android mobile operating system. Undoubtedly emphasis will now switch to Android.
June 2011 -- Google utilizes GIPS technology in releasing WebRTC, a proposed standard for peer-to-peer audiovisual communication between browsers.
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