Akamai Technologies has acquired select assets from Edgio following approval by the U.S. Bankruptcy Court for the District of Delaware. The deal includes customer contracts from Edgio’s content delivery and security businesses, along with non-exclusive licensing rights to Edgio’s patent portfolio. The transaction does not include Edgio personnel, core technology, or network assets, as Edgio winds down its content delivery network operations by mid-January 2025.
The acquisition brings hundreds of Edgio customers into Akamai’s ecosystem, providing them with a smooth transition to Akamai’s reliable and scalable platform. Customers will gain immediate access to Akamai’s full suite of advanced cloud computing and cybersecurity solutions. Financially, the deal is expected to drive significant revenue growth, with Akamai projecting $80-$100 million in additional revenue in 2025 and improved profitability as operations are integrated.
• Transaction Scope: Includes Edgio’s customer contracts and non-exclusive rights to its patents; excludes personnel and network assets.
• Customer Migration: Edgio customers will transition to Akamai’s platform, ensuring uninterrupted service.
• Financial Impact:
• Q4 2024: Adds $9-$11 million in revenue; dilutive to non-GAAP earnings by $0.03-$0.05.
• FY 2025: Adds $80-$100 million in revenue; accretive to non-GAAP earnings by $0.15-$0.20.
• Transition Costs: Akamai to cover Edgio’s network operations during the wind-down period, estimated at $25-$30 million in 2025.
• Strategic Benefit: Enhances Akamai’s customer base, with opportunities for cross-selling cloud and security solutions.
With this acquisition complete, Akamai strengthens its leadership in cloud delivery and cybersecurity, reinforcing its ability to serve high-value customers with reliable, scalable services.
- In September, Edio voluntarily filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware to support the sale of its business. Partnering with primary lender Lynrock Lake Master Fund LP, Edgio has secured a stalking horse bid of $110 million to anchor the sale process, which aims to conclude in approximately 80 days. Despite the Chapter 11 filing, Edgio continues to serve over 935 global customers with ongoing operations.
- Edgio was founded in 2022, following the acquisition of Edgecast by Limelight Networks, a long-established provider of content delivery services. The merger and rebranding as Edgio created a company that focuses on delivering fast, secure digital content across media, websites, and mobile applications. Leveraging the combined expertise of Limelight and Edgecast, Edgio offers comprehensive solutions to help clients accelerate content delivery, enhance security, and scale globally.