Edgio Inc., a software solutions provider, today announced the completion of Limelight’s acquisition of Edgecast. The combined company will operate as Edgio, promising to deliver increased scale and scope with diversified revenue across products, clients, geographies, and channels. The acquisition has an expanded total addressable market of $40 billion.
Yahoo received approximately 80.8 million shares of Limelight common stock, valuing Edgecast at approximately $300 million based on the 30-day trailing VWAP of approximately $4.12. The purchase price included a $30 million cash investment into Edgio by Apollo and its co-investors, through their ownership of Yahoo as well as preliminary net working capital adjustments, which include the prepayment of certain expenses by Yahoo.
Yahoo can also receive up to an additional 12.7 million shares of Edgio, representing up to $100 million of additional deal consideration, over the period ending on the third anniversary of the closing of the transaction, subject to the achievement of share-price targets. Edgio stockholders own approximately 66.8% of the combined company, or approximately 63.5% under the assumption that Edgio achieves all share price targets under the conditional consideration agreement, while Yahoo will own approximately 33.2% or 36.5%, respectively.
“Today marks a meaningful step in our ability to address this need,” said Bob Lyons, CEO of Edgio. “Edgio now boasts the most complete edge-native web application and API solution, best-in-class streaming and delivery capabilities, all running on the world’s most performant globally-scaled edge network. These unique capabilities create a robust platform for growth and profitability,”
Edgio solutions combine the power of the edge platform with a complete set of capabilities for web applications, APIs, and video content. The company now delivers about 20% of the world’s internet traffic from instant-loading websites to high-demand content for 20,000 leading digital companies such as Amazon, Sony, Kate Spade, Microsoft, Sun TV, Verizon, Disney, TikTok, and Twitter.