Google to acquire Global IP Solutions

Google (NasdaqGS: GOOG) is enhancing its real time video and audio communications capabilities by reaching an agreement to acquire Olso, Norway-based Global IP Solutions AB (Oslo: GIPS.OL).

The deal, which will be conducted via its Google Acquisitions Holdings Inc. unit, will offer $68 million in cash to acquire issued-and-to-be-issued shares of GIPS for $2.12 a share.

In acquiring GIPS, an Oslo-based analyst pointed out in a Wall Street Journal article that Google wants to capitalize on GIPS' technology versus its financial performance, which has been less than impressive. While GIPS reported $12.06 million in annual revenue in 2009, it had a $6.95 million loss. GIPS' board of directors said they have recommended shareholders accept Google's offer.  

"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," said Rian Liebenberg, Engineering Director at Google in a release.

For more:
- see the release here
- Wall Street Journal has this article (subscription required)

Related articles:
Goober goes for the HD and UC market
Goober offers partly free iPhone VoIP calls

Suggested Articles

On Friday, CenturyLink announced it recently finished up a fiber project that connected 14,000 additional homes, in Boulder, Colo. to gigabit speeds.

SD-WAN could emerge as a prime technology that better enables work-from-home (WFH) and work-from-anywhere (WFA) scenarios for enterprises.

Windstream Enterprise has launched a live, web-based chat feature for its OfficeSuite UC Contact Center Services portfolio.