NeuStar will takeover the company; projects revenue growth for UltraDNS services to be in excess of 40%.

NeuStar, Inc., a provider communication services, today announced that it has entered into a merger agreement to acquire UltraDNS Corporation, a provider of managed Domain Name Systems (DNS) services of Reston, Virginia, for $61.8 million in cash.

For 2006, NeuStar projects revenue growth for UltraDNS services in excess of 40%, and expects the acquisition to be accretive by the first quarter of 2007, including the amortization of intangibles resulting from the acquisition.

"With the acquisition of UltraDNS, NeuStar will be an even stronger provider of essential services to the communications industry, expanding the foundation for our continued growth and profitability," said Jeff Ganek, NeuStar's Chairman and CEO.

"We are delighted to be joining forces with NeuStar," said Ben Petro, President and CEO of UltraDNS. "NeuStar and UltraDNS are recognized leaders in providing interoperability and security services to the global Internet community. The combined strength of NeuStar and UltraDNS make for a solid foundation of innovation for our customers."