Akamai(AKAM) Prnewswire·2024-11-26 21:01Core Viewpoint - Akamai Technologies has received court approval to acquire select assets from Edgio, which includes customer contracts and non-exclusive patent license rights, as part of Edgio's Chapter 11 bankruptcy proceedings [1][2]. Acquisition Details - The acquisition was finalized after Akamai submitted the winning bid during Edgio's bankruptcy auction on November 13, 2024 [2]. - The transaction will not include Edgio personnel, technology, or network-related assets [1]. Customer Transition - Upon closing, several hundred new Akamai customers will transition to Akamai's services, ensuring a smooth migration before Edgio ceases its operations [3]. - Akamai aims to provide these customers immediate access to its full range of cybersecurity and cloud computing services [3]. Financial Impact - For Q4 2024, Akamai expects the transaction to contribute approximately 11 million in revenue, with transition service costs estimated at 17 million [4]. - The transaction is anticipated to be dilutive to non-GAAP net income per diluted share by approximately 0.05 in Q4 2024 [4]. Future Projections - For the full year 2025, Akamai projects the transaction will add approximately 100 million in revenue and incur transition service costs of about 30 million [5]. - It is expected to be accretive to non-GAAP net income per diluted share by approximately 0.20 [5]. Strategic Value - Akamai's management believes the acquisition will create significant value by integrating new customers onto its platform, improving profitability, and unlocking growth opportunities [6]. - The transaction is expected to close in early December 2024, pending customary closing conditions [6].