Akamai targets operators with completed Verivue acquisition
Michelle Clancy | 05-12-2012
Akamai Technologies has completed its acquisition of Verivue, a privately-held company based in Westford, Massachusetts that provides licenced content delivery network (CDN) infrastructure solutions for network operators.
Akamai announced a definitive agreement acquire Verivue in a cash transaction in November. Akamai said that the combination of the two companies' technologies and teams is expected to help Akamai accelerate market availability of a comprehensive portfolio of operator-focused CDN products—a relatively new focus area for the CDN leader"Network operators are turning to CDN technologies as a strategic and highly complementary way to offer new and differentiated content services, reduce network infrastructure costs and ensure a quality experience for subscribers across a variety of IP-connected devices," said Paul Sagan, president and CEO of Akamai. "Since the launch of our Aura Network Solutions earlier this year, Akamai has been meeting with network operators worldwide. With our acquisition of Verivue now complete, we believe we are well-positioned to offer network operators a more robust, operator CDN solution as well as federation with the world's leading content delivery platform."
When it comes to financials, Akamai said that it doesn't expect the acquisition of Verivue to materially impact results of operations in the current quarter, so it won't be updating fourth quarter 2012 guidance as a result of this acquisition. The acquisition is expected to be slightly dilutive by approximately one cent on a normalized, diluted per share basis in 2013, it said.