Limelight Networks, a provider of edge-enabled web applications, is acquiring Yahoo’s Edgecast, a provider of edge security and content delivery services, for $300 million. Edgecast is a business unit of Yahoo which is owned by funds managed by affiliates of Apollo.
Edgecast helps companies meet the expectations of their customers through content delivery, cloud security, and video streaming services. Apollo Funds is committed to supporting the growth strategy and vision of the combined company. The all stock transaction represents Apollo Funds’ confidence in the momentum of the edge enabled technology.
“By uniting Limelight and Edgecast, we are building a powerful application, content, and video edge enabled solutions company,” said Bob Lyons, CEO of Limelight. “Together we have a strong value proposition to serve the fast-growing, yet fragmented edge solutions market and our combined capabilities will accelerate our ability to capture more share of this high growth $40 billion total TAM.”
Goldman Sachs is serving as a financial advisor to Limelight, and Goodwin Procter LLP is serving as legal counsel. Evercore and RBC Capital Markets are serving as financial advisors to Edgecast, and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel.