- Akamai Technologies, Inc. (NASDAQ: AKAM) today announced it has completed its acquisition of Nine Systems Corporation, a privately held company based in San Diego, California. Akamai announced a definitive agreement on November 20, 2006 to acquire Nine Systems in a merger transaction.
Akamai believes that its acquisition of Nine Systems will provide Akamai with a robust rich media management framework upon which services can be built to enable customers to more effectively control and monetize their digital assets. Nine Systems' Stream OS solution, a suite of configurable rich media management tools designed for the production and publishing of rich media content online, is now part of Akamai's solution portfolio.
"We believe that the addition of Nine Systems' technology broadens our total offering, demonstrates our commitment to the digital media market, and will enable our media customers' businesses to grow even more rapidly," said Paul Sagan, president and CEO of Akamai. "We are delighted to start working with a talented group of new employees who are joining us and look forward to bringing to market solutions designed to help our customers simplify the control, management, distribution, reporting, and monetization of digital assets on the Internet."
Under terms of the agreement, Akamai has acquired all of the outstanding common stock, preferred stock, and vested and unvested stock options of Nine Systems by issuing approximately 3.1 million shares of Akamai common stock and approximately $8.0 million in cash, including related change-in-control payments. The merger transaction will be accounted for by Akamai under the purchase method of accounting.
Akamai expects to provide an update on its integration with Nine Systems during its fiscal year 2006 financial call.
Akamai is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted Choice for Online Business." For more information, visit www.akamai.com.
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, difficult in integrating Nine Systems' operations with Akamai's, changes in tax laws or interpretations of existing tax laws, failure of Akamai's network infrastructure, continuing market acceptance of our services and those provided by Nine Systems and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.