Network Solutions, Inc. (Nasdaq: NSOL) jumped as it announced a batch of good news Wednesday; the company said it will split its stock, review its business structure, and make a secondary stock offering.
Shares in the company, which pioneered the development of registering Web addresses ending in .com, .net, .org and .edu jumped 15 11/16 to 283 3/16 in early trading. The stock has been on an upswing since it rolled past estimates in its first quarter.
The company also said it intends to retain financial advisors to advise its board of directors on possible structures for separation of Network Solutions' registry and registrar services, in keeping with agreements signed on November 10.
"This review process, which we expect to take several months, will help us to maximize Network Solutions' shareholder value within the options provided by these agreements," said James P. Rutt, chief executive officer of Network Solutions
The stock split will occur after the completion of a follow-on common stock offering also announced Wednesday. As a result of the stock split and the sale by Network Solutions for 1 million shares in the offering, the number of shares of common stock currently outstanding will increase from about 33.9 million to 69.8 million.
Network Solutions, Inc also said it has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for an offering of 7.7 million shares, 6.7 of which are to be sold by Science Applications International Corporation (SAIC). Network Solutions won't receive any proceeds from the sale of that stock. After the offering is completed, SAIC will own about 23 percent of Network Solutions' common stock.
Network Solutions also said Wednesday that board members John E. Glancy and Donald N. Telage will resign. Dr. Glancy is corporate executive vice president at Science Applications International Corporation (SAIC). Dr. Telage has been Network Solutions' senior vice president of Internet Relations and Special Programs and was a former officer of SAIC.