Akamai receives approval to acquire select assets from Edgio

Akamai (AKAM) Technologies announced that the U.S. Bankruptcy Court for the District of Delaware has approved its bid to acquire select assets from Edgio, including certain customer contracts from Edgio’s businesses in content delivery and security, and non-exclusive license rights to patents in Edgio’s portfolio. The transaction does not include the acquisition of Edgio personnel, technology, or assets related to the Edgio network. The court approval follows Akamai submitting the winning bid for the select assets during Edgio’s 363 bankruptcy auction on November 13 as part of its filing for Chapter 11 bankruptcy relief. For the Q4 Akamai expects this transaction to add approximately $9M-$11M in revenue. As part of its bid, Akamai agreed to pay certain costs for Edgio to operate its network during the transition and wind-down period until such time as Edgio ceases operation of its content delivery network in mid-January 2025. Akamai expects those transition services costs to be approximately $15M-$17M in the Q4. Akamai anticipates the transaction to be dilutive to non-GAAP net income per diluted share by approximately 3c-5c in the Q4, inclusive of the transition service costs. For the FY25, Akamai anticipates this transaction will add approximately $80M-$100M in revenue, approximately $25M-$30M of transition service costs, and be accretive to non-GAAP net income per diluted share by approximately 15c-20c. The transaction is expected to close in early December 2024, subject to customary closing conditions for a transaction of this type. When the transaction closes, several hundred net new Akamai customers will have a clear path and the necessary support to migrate.