VeriSign in Stock Deal to Acquire Illuminet

VeriSign Inc. said it will acquire Illuminet Holdings Inc. for $1.2 billion in stock, allowing it to further broaden its communications technology holdings, which include Web identity, authentication and secure-payment systems.

Illuminet, based in Olympia, Wash., is one of the largest providers of signaling technology, the equipment that allows phone companies to connect calls across different networks.

VeriSign said that no layoffs are expected at either company.

Under the agreement, VeriSign of Mountain View, Calif., will exchange 0.93 share or option of VeriSign common stock for each outstanding share or option of Illuminet and will assume Illuminet’s outstanding employee stock options.

Shares in VeriSign rose $1.56 to $39.86, and Illuminet jumped $1.39 to $36.37, both on Nasdaq.