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Akamai Technologies, Inc. (NASDAQ: AKAM) announced today that it has acquired Red Swoosh, Inc. in an all-stock merger transaction. The acquisition of Red Swoosh is valued at approximately $15 million, net of cash acquired.
Over the last six years, Red Swoosh has developed innovative client-side technology for supporting the management and distribution of media files in a controlled fashion, respecting the rights restrictions and copyrights of all publishers. By providing a controlled environment with effective business rules, Red Swoosh's technology is designed to empower content publishers and distributors to manage and monetize large-file distribution to edge devices, such as set top boxes and personal computers.
The acquisition of Red Swoosh is expected to augment Akamai's distributed Internet presence by combining client-side file management and distribution software with Akamai's scalable backend control system and global network of edge servers. The Red Swoosh team will be integrated into Akamai's existing engineering team in California.
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, including statements about the anticipated closing of the acquisition, the expectations with respect to integration of the Red Swoosh technology and resulting benefits and the expected future business and financial performance of Akamai resulting from and following the acquisition. 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, inability to successfully integrate the technology of Red Swoosh or to develop products based on the technology 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.