Filing Flows › VeriSign (VRSN) › Takeover & LBO
Is VeriSign (VRSN) a takeover target?
A leveraged buyout at today's price plus 30% ($407.38 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $216.44 a share (−31% against today's $313.37). Historically 2.2% of companies with its figures were bought within a year (0.44× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $407.38 | today's $313.37 plus 30% |
| × shares | 90.4 million | |
| = Equity value | $36.8B | |
| + Debt refinanced | $0 | |
| − Cash | $476M | |
| = Enterprise value | $36.4B | 30.4× EBITDA of $1.2B |
| Fees | $727M | 2% of the price |
| New debt | $6.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $30.5B | 82% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.8B | $1.3B | $504M | $544M | $6.0B |
| Year 2 | $1.9B | $1.3B | $462M | $630M | $5.4B |
| Year 3 | $2.0B | $1.4B | $414M | $715M | $4.7B |
| Year 4 | $2.1B | $1.5B | $359M | $798M | $3.9B |
| Year 5 | $2.2B | $1.5B | $298M | $879M | $3.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 23.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $35.1B | |
| − Debt left | $3.0B | |
| = Buyer's equity | $32.1B | |
| Money multiple | 1.05× | on $30.5B put in |
| Buyer's yearly return (IRR) | 1.0% |
Price against return
What the buyer makes at other premiums over today's $313.37; the IRR reaches 20% at $216.44 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $344.71 | 5.3% |
| 20% | $376.04 | 3.0% |
| 30% | $407.38 | 1.0% |
| 40% | $438.72 | −0.8% |
| 50% | $470.06 | −2.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.7B | |
| EBITDA, last 12 months | $1.2B | 69.2% of revenue |
| Depreciation and amortization | $26.5M | |
| Capital spending | $38.1M | |
| Debt | $0 | |
| Cash | $476M | |
| Share price | $313.37 | on Nov 5, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 6.5% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 24% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, VeriSign would cost about $407.38 a share, $36.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $350.97 | $31.7B |
| Median | 30% | $407.38 | $36.8B |
| High end (a quarter paid more) | 31% | $410.51 | $37.1B |
The odds, from history
Historically 2.2% of companies with its figures were bought within a year (0.44× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
VeriSign's latest quarter
VeriSign, Q3 2026: revenue $443M (+6% year over year), operating margin 66.9%, net earnings $213M, operating cash flow $268M. The chart follows the revenue to costs, profit and cash.
Questions
Is VeriSign being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy VeriSign?
A leveraged buyout at today's price plus 30% ($407.38 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $216.44 a share (−31% against today's $313.37).
What would a takeover of VeriSign cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, VeriSign would cost about $407.38 a share, $36.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.