Limelight Networks, Inc. (LLNW), a Tempe, Arizona-based content delivery network services provider, Monday announced a definitive agreement to acquire privately held EyeWonder, Inc. The transaction is expected to close in the first half of 2010.
Under the terms, Limelight will pay a consideration of about $110 million to EyeWonder's shareholders at the closing of the transaction. The consideration includes about $62 million cash subject to adjustment based on EyeWonder's financial condition at closing and about 12.74 million shares of Limelight common stock. EyeWonder will receive an additional 4.86 million shares of Limelight common stock upon achieving certain financial results in 2010.
Atlanta, Georgia-based EyeWonder is a developer of monetization solutions that help advertisers, interactive agencies and content publishers to create, build, track and optimize rich media and interactive video advertising campaigns. EyeWonder's advertising serving platform is projected to service over $500 million in media spend globally in 2009.
The combination of EyeWonder's solutions and Limelight Networks' delivery, storage, management and consulting services is expected to provide customers with ways to unlock the value of their online content and maximize the revenue and profitability of their online strategies. The combined company will also be enriched with relationships of over 2500 online businesses, over 800 interactive agencies, 900 last-mile access networks and over 20 ecosystem partners.
Commenting on the acquisition, Jeff Lunsford, chairman and chief executive officer of Limelight Networks, Inc., said, "Limelight and EyeWonder bring together deep technical and operational skills for creating a brilliant online experience anywhere, on any device, and the ability to help advertisers and publishers monetize that experience."
Limelight further noted that certain key employees of EyeWonder will also enter into employment arrangements with Limelight that will involve additional equity compensation.
LLNW last traded on Friday at $3.79 on the Nasdaq. In the past 52-week period, the stock traded in broad range of $2.05 - $5.78, on a 3-month average volume of 239K shares.
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