Verizon Communications Inc. (NYSE: VZ) is set to acquire content delivery service EdgeCast.
The price tag remains undisclosed, but reports peg the deal to be worth roughly $350 million.
Verizon will fold EdgeCast into its digital media services unit, allowing the New York-based communications giant to once again bolster its delivery of Internet media. In November, Verizon bought Newbury Park, Calif.-based upLynk LLC, a technology provider that helps streamlines the process of uploading and encoding video for on-demand content.
Founded in 2006, EdgeCast has more than 6,000 accounts and serves various websites, including Twitter Inc. (NYSE: TWTR) and Hulu LLC. Since then, the Los Angeles company has delivered more than four trillion digital items a month to Internet users, according to a statement from chief executive Alex Kazerani.
The boards of both Verizon and EdgeCast have approved the transaction, which is expected to close in 2014.
Among EdgeCast’s venture capital investors are Menlo Ventures, Performance Equity Management and Steamboat Ventures, the venture capital arm of the Walt Disney Co. (NYSE: DIS).
Boutique investment bank LionTree Advisors advised Verizon on the purchase.