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)
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