NeuStar Buys British IM Outfit

NeuStar(NSR Quote) bought U.K.-based instant messaging provider Followap for $139 million in cash.

The Sterling, Va., communications services outfit said it expects Followap revenue to exceed $25 million in 2007 and to more than double in 2008. NeuStar also reaffirmed 2006 guidance issued on Nov. 2.

Followap provides interoperability between operators and Internet portals in five different functional areas: instant messaging, presence, multimedia gateways, inter-carrier messaging hubs, and services for handset clients.

"Followap brings a large community of new customers outside of North America," NeuStar said. "Second, it makes NeuStar essential to a new, fast growing service for the wireless industry. And, third, it enables NeuStar to solve immediate infrastructure challenges the MNOs face in delivering advanced, IP-based services."

Shares were halted late Monday.