Akamai Completes Acquisition of Edgio Assets
Deal News | Dec 16, 2024 | EIN

Akamai Technologies has announced its acquisition of select assets from Edgio, following the approval from the U.S. Bankruptcy Court for the District of Delaware. The transaction, which excludes Edgio personnel, core technology, or network assets, focuses on customer contracts and non-exclusive licensing rights to Edgio's patent portfolio, as Edgio winds down its operations by mid-January 2025. This acquisition integrates hundreds of Edgio customers into Akamai's ecosystem, allowing them access to Akamai's advanced cloud computing and cybersecurity solutions. Financial projections state that Akamai expects an incremental $80-$100 million in revenue in 2025 and improved profitability from this acquisition. Transition costs for Akamai are anticipated between $25-$30 million in 2025. Edgio, which filed for Chapter 11 in September, continues to undergo a sales process with a stalking horse bid anchored at $110 million, with the goal of concluding the process in about 80 days. This acquisition strengthens Akamai's leadership in cloud delivery and cybersecurity, further elevating its service offerings.
Sectors
- Technology Services
- Bankruptcy and Restructuring
Geography
- United States – The acquisition and related bankruptcy proceedings are taking place in the United States, specifically Delaware.
Industry
- Technology Services – Involves the acquisition and integration of technology services related to content delivery and cybersecurity.
- Bankruptcy and Restructuring – Edgio filed for Chapter 11 bankruptcy, facilitating the acquisition process.
Financials
- $80-$100 million – Projected additional revenue for Akamai in 2025 from the acquisition.
- $25-$30 million – Estimated transition costs for Akamai covering Edgio's network operations.
- $110 million – Anchor stalking horse bid for Edgio's sale process.
Participants
Name | Role | Type | Description |
---|---|---|---|
Akamai Technologies | Acquiring Company | Company | A global leader in cloud delivery and cybersecurity solutions. |
Edgio | Target Company | Company | A content delivery and security company in Chapter 11 bankruptcy. |
U.S. Bankruptcy Court for the District of Delaware | Government | Government | The court overseeing Edgio's Chapter 11 bankruptcy process. |
Lynrock Lake Master Fund LP | Primary Lender | Company | The primary lender working with Edgio on the sale process. |