Akamai Technologies, Inc. announced on November 26, 2024, that the U.S. Bankruptcy Court for the District of Delaware has approved its bid to acquire select assets from Edgio. These assets include certain customer contracts from Edgio's content delivery and security businesses, along with non-exclusive license rights to patents in Edgio's portfolio. The transaction does not involve the acquisition of Edgio personnel, technology, or network assets.
This court approval follows Akamai's winning bid during Edgio's 363 bankruptcy auction on November 13, 2024. The decision allows the sale to proceed, with the transaction expected to close in early December 2024. Akamai anticipates that several hundred new customers will gain a clear path and necessary support to migrate to Akamai's services before Edgio ceases its content delivery network operations in mid-January 2025.
Akamai expects this transaction to add approximately $9 million to $11 million in revenue for the fourth quarter of 2024. For the full year 2025, the transaction is projected to add approximately $80 million to $100 million in revenue and be accretive to non-GAAP net income per diluted share by approximately $0.15 to $0.20. However, Akamai also expects transition service costs of approximately $15 million to $17 million in the fourth quarter, making the transaction dilutive to non-GAAP net income per diluted share by about $0.03 to $0.05 in Q4.
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