Paypal makes a $370 million cash purchase of Verisign's payment gateway business.

VeriSign, Inc., a provider of intelligent infrastructure services for Internet and telecommunications networks, today announced the completion of sale of its payment gateway business to PayPal, an eBay company, on November 18, 2005.

In accordance with the terms of the asset purchase agreement announced on October 10, 2005, PayPal paid $370 million in cash to VeriSign upon closure of the transaction.

VeriSign will now account for the payment gateway business as a discontinued operation. It expects the revenue impact of the transaction to be a reduction in the range of $7-8 million to the previous Q4 2005 revenue guidance of $395-400 million.