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Combined technology and teams expected to help accelerate market availability of comprehensive Operator CDN products
Akamai Technologies, Inc. (NASDAQ: AKAM) and Verivue announced today that the two companies have signed a definitive agreement for Akamai to acquire Verivue in a cash transaction. The acquisition is expected to complement Akamai's Aura Network Solutions and accelerate Akamai's time to market in providing a comprehensive, licensed content delivery network (CDN) solution for network operators.
According to market research firm IDC, network operators worldwide are looking at ways to leverage on-net CDNs to improve the performance of their own digital cable and IPTV premium services and extend their managed multiscreen offerings. Operators can position their on-net CDNs and other network resources as optimized on-ramps that content publishers, OTT content aggregators, application developers, and set-top box vendors can use to reach a critical mass of potential viewers and provide a better end-to-end experience for their end users.1
"Verivue has done an impressive job of building a licensed content delivery infrastructure and getting it deployed with several important operators," said Mick Scully, Vice President and General Manager of Akamai's Carrier Products Division. "We believe that Verivue's technology will complement our roadmap for creating a comprehensive Operator CDN solution. Akamai has relationships with hundreds of network operators, and we offer them instant federation with our global Intelligent Platform. We believe joining forces with Verivue will allow us to help operators maximize content revenues and network efficiencies as the flood of media and video traffic increases."
"Together with Akamai, we believe we will be able to offer the industry's most powerful, extensible and fully integrated Operator CDN platform," said James Dolce, CEO of Verivue. "This is an exciting step for our two companies. Operators are looking for services to drive revenue, such as advanced cloud capabilities or by providing licensed content to users on a variety of IP-connected devices. By combining our teams, we believe we can help meet this immediate market opportunity."
Founded in 2006, Verivue has approximately 60 employees. The closing of the transaction, which is subject to customary closing conditions, is expected to occur by the end of 2012.
Headquartered in Westford, MA, Verivue, Inc. develops and markets high-performance IP platforms that enable network operators to distribute, deliver and control enormous amounts of IP-based media traffic across a growing and diverse number of end devices. The Company offers solutions for service providers to accelerate content delivery for managed and unmanaged service provider networks. Additional information about Verivue products and services can be found at www.verivue.com.
Akamai® is the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere. At the core of the Company’s solutions is the Akamai Intelligent Platform™ providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. Akamai removes the complexities of connecting the increasingly mobile world, supporting 24/7 consumer demand, and enabling enterprises to securely leverage the cloud. To learn more about how Akamai is accelerating the pace of innovation in a hyperconnected world, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter.
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 expected benefits to Akamai from 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, failure of the parties to consummate the transaction, inability to successfully integrate the technology of Verivue or to develop products based on the technology, absence of market demand for Akamai's operator CDN solutions, failure of the markets addressed by Akamai's solution to develop as expected 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.
1 IDC: Exploring the Effect of Explosive Video Growth on Carrier Infrastructure and Business Models, doc. #235433, June 2012.