« Today I told three entrepreneurs to not raise money | Main | playing around with Paypal »
March 16, 2005
Akamai acquires Speedera
Akamai continues to roll up the content network space. They have been in a patent fight with Speedera for some time although it hasn't hurt Speedera's ability to grow their business profitabily. I am a small investor in Speedera through another fund and am quite happy with the outcome as an investor. Glad to see George is keeping Akamai on an even keel.
Akamai to Acquire Speedera in Stock Deal Wednesday March 16, 8:51 am ET Akamai Technologies to Acquire Speedera Networks for $130 Million in Stock
NEW YORK (AP) -- Software maker Akamai Technologies Inc. said on Wednesday it has reached an agreement to acquire Speedera Networks Inc., a provider of distributed application hosting and content delivery services, in an all-stock deal valued at $130 million.
Akamai, whose services allow companies and government agencies to deliver Web content and applications such as advertisements and video, said acquiring Speedera would allow it to better compete against larger rivals. The acquisition is expected to add to Akamai's earnings excluding items, the company said.
Under terms of the deal, Akamai said it will issue about 12 million shares of common stock to acquire all outstanding common stock, preferred stock, and stock options of Speedera and its India subsidiary.
Based on Akamai's Tuesday closing stock price of $10.79 on the Nasdaq, the transaction is valued at roughly $130 million, the company said.
The closing of the deal, which is subject to approval from regulators and Speedera's stockholders, is expected to occur in the second quarter, Akamai said. It also said that all pending litigation between the two companies is stayed upon signing of the deal, and will be formally dismissed when the deal is closed.
Nasdaq-listed Akamai shares rose 13 cents to $10.92 in premarket activity.
Posted by Martin at March 16, 2005 9:46 PM
Trackback Pings
TrackBack URL for this entry:
http://www.nwventurevoice.com/cgi-bin/mt-tb.cgi/1832
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)