Akamai Completes Acquisition of Select Assets of Edgio

Rhea-AI Summary

Akamai Technologies (NASDAQ: AKAM) has completed its acquisition of select assets from Edgio, following approval from the U.S. Bankruptcy Court for the District of Delaware on Nov. 26, 2024. The acquisition includes specific customer contracts in content delivery and security, along with non-exclusive patent license rights from Edgio's portfolio. The deal excludes Edgio's personnel, technology, and network assets. This strategic move enables Akamai to provide several hundred new customers with a migration path to its services before Edgio's content delivery network ceases operations. These customers will also gain access to Akamai's comprehensive security and cloud solutions.

Positive

• Acquisition of valuable customer contracts in content delivery and security
• Addition of several hundred net new customers to Akamai's portfolio
• Gained non-exclusive license rights to Edgio's patents
• Opportunity to upsell new customers with additional security and cloud solutions

Negative

• acquisition scope excluding technology and network assets
• Potential integration costs and resources needed for customer migration

News Market Reaction – AKAM

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On the day this news was published, AKAM declined 1.95%, reflecting a mild negative market reaction.

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CAMBRIDGE, Mass., Dec. 13, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers business online, today announced it has completed its acquisition of select assets from Edgio, including certain customer contracts from Edgio's businesses in content delivery and security, and non-exclusive license rights to patents in Edgio's portfolio. On Nov. 26, 2024, the U.S. Bankruptcy Court for the District of Delaware approved Akamai's bid to acquire the aforementioned assets following Edgio's 363 bankruptcy auction on Nov. 13, 2024, as part of its filing for Chapter 11 bankruptcy relief. The transaction does not include the acquisition of Edgio personnel, technology, or assets related to the Edgio network.

Akamai can now offer several hundred net new Akamai customers a clear path and the necessary support to smoothly migrate to a best-in-class and reliable provider of the services they need prior to Edgio ceasing operations of its content delivery network. The Company also plans to offer the new customers the opportunity to take advantage of Akamai's full range of security and cloud solutions, which run on the world's most distributed platform.

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.

Contacts
Akamai Public Relations
AkamaiPR@akamai.com

Akamai Investor Relations
IR-InvestorRelations@akamai.com

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 potential benefits of the transaction to Akamai and its customers and management's expectations regarding new customer additions and customer migration in connection with 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: Akamai being unable to achieve the anticipated benefits of the transaction; the risk that customer migration may be more difficult, time-consuming or costly than expected; the retention of key personnel during the transition period; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; effects of competition, including pricing pressure and changing business models; impact of macroeconomic trends, including economic uncertainty, turmoil in the financial services industry, the effects of inflation, rising and fluctuating interest rates, foreign currency exchange rate fluctuations, securities market volatility and monetary supply fluctuations; continuing supply chain and logistics costs, constraints, changes or disruptions; defects or disruptions in Akamai's products or IT systems, including cyber-attacks, data breaches or malware; 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.

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SOURCE Akamai Technologies, Inc.

FAQ

What assets did Akamai (AKAM) acquire from Edgio in December 2024?

Akamai acquired select customer contracts in content delivery and security, and non-exclusive license rights to patents from Edgio's portfolio. The acquisition excluded Edgio's personnel, technology, and network assets.

How many new customers will Akamai (AKAM) gain from the Edgio acquisition?

Akamai will gain several hundred net new customers from the Edgio acquisition.

When did the U.S. Bankruptcy Court approve Akamai's (AKAM) bid for Edgio assets?

The U.S. Bankruptcy Court for the District of Delaware approved Akamai's bid on November 26, 2024, following Edgio's 363 bankruptcy auction on November 13, 2024.

What services will Akamai (AKAM) offer to former Edgio customers?

Akamai will offer migration support to its content delivery services and access to its full range of security and cloud solutions running on their distributed platform.