December 22, 2009, 12:00 AM

Limelight Networks announces agreement to buy digital ad firm

Internet content delivery network Limelight Networks Inc. has agreed to acquire EyeWonder Inc., a provider of rich media and video technology for online advertisers, for up to $110 million in cash and stock.

Zak Stambor

Managing Editor

 

Internet content delivery network Limelight Networks Inc. has agreed to acquire EyeWonder Inc., a provider of rich media and video technology for online advertisers, for up to $110 million in cash and stock. The transaction is expected to close in the first half of 2010.

The acquisition is aimed at bolstering Limelight’s online strategies in the rich media, video, mobile, and web TV advertising sectors. “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,” says Jeff Lunsford, Limelight’s chairman and CEO.

Limelight will pay roughly $62 million in cash, subject to adjustment based on EyeWonder`s financial condition at closing, and about 12.74 million common shares. If EyeWonder achieves certain financial results in 2010, Limelight plans to issue up to 4.86 million common shares to former EyeWonder employees in 2011, the company says.

EyeWonder’s advertising serving platform is projected to service over $500 million in media spend globally in 2009, says Limelight.

EyeWonder was advised on the transaction by Madison Alley Global Ventures.

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