Akamai Announces Winning Bid for Select Assets of Edgio

Rhea-AI Summary

Akamai (NASDAQ: AKAM) has emerged as the winning bidder to acquire select assets from Edgio, following Edgio's Chapter 11 bankruptcy filing on September 9, 2024. The acquisition includes customer contracts from Edgio's security and content delivery businesses, along with non-exclusive license rights to Edgio's patent portfolio, but excludes Edgio's network assets. The 363 sale auction concluded on November 13, 2024, with court approval hearing scheduled for November 25, 2024. If approved, the transaction is expected to close in Q4 2024, subject to customary conditions. Financial impact details will be provided post-court approval.

Positive

• Strategic acquisition of customer contracts in security and content delivery sectors
• Access to Edgio's patent portfolio through non-exclusive license rights
• Opportunity to expand customer base through acquisition of contracts

Negative

• None.

News Market Reaction

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-1.04% News Effect

On the day this news was published, AKAM declined 1.04%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CAMBRIDGE, Mass., Nov. 15, 2024 /PRNewswire/ -- Akamai (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today announced it is the winning bidder to acquire select assets from Edgio, including customer contracts from Edgio's businesses in security and content delivery, and non-exclusive license rights to Edgio's entire patent portfolio. No assets related to the Edgio network would be acquired as part of the bid. Pursuant to Edgio's filing for Chapter 11 bankruptcy relief on September 9, 2024, Edgio initiated a 363 bankruptcy sale procedure for qualified bidders to bid for the company's assets. The 363 sale auction was concluded on November 13, 2024, and winning bids were declared. The court hearing to consider approval of the sale transaction is currently set for November 25, 2024. Following court approval, the parties can proceed with closing the transaction. Akamai anticipates providing additional information regarding the expected financial impact from assets purchased as part of the transaction once approved by the court.

If the court approves, the transaction would be expected to close in the fourth quarter of 2024, subject to customary closing conditions for a transaction of this type.

About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense-in-depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.

Akamai Statement Under the Private Securities Litigation Reform Act
This press release contains statements that are not statements of historical fact and constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about the terms of the transaction, its approval by the bankruptcy court and the expected closing date of the transaction. Each of the forward-looking statements is subject to change as a result of various important factors, many of which are beyond the company's control, including, but not limited to: the bankruptcy court's approval process; the risk that the transaction may not be completed in a timely manner or at all; the parties' ability to satisfy closing conditions; the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction agreements; changes to economic, political and regulatory conditions in the United States or internationally; and other factors that are discussed in the company's most recent Annual Report on Form 10-K, subsequent quarterly reports on Form 10-Q and other documents filed with the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Akamai does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Media Contacts
Akamai PR
AkamaiPR@akamai.com 

Investor Relations
IR-InvestorRelations@akamai.com 

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SOURCE Akamai Technologies, Inc.

FAQ

What assets is Akamai (AKAM) acquiring from Edgio in the bankruptcy sale?

Akamai is acquiring customer contracts from Edgio's security and content delivery businesses, and non-exclusive license rights to Edgio's patent portfolio. The acquisition does not include Edgio's network assets.

When is the expected closing date for Akamai's (AKAM) acquisition of Edgio assets?

If approved by the court, the transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

When was Edgio's bankruptcy filing and when did Akamai (AKAM) win the bid?

Edgio filed for Chapter 11 bankruptcy on September 9, 2024, and Akamai won the 363 sale auction that concluded on November 13, 2024.