Akamai Technologies Inc., provider of services that accelerate the delivery of web content, has agreed to acquire Netli, provider of on-demand web content acceleration, for about $180 million in Akamai common stock.
Under terms of the agreement, Cambridge, MA-based Akamai will acquire all of the outstanding equity of Netli, Mountain View, CA, for approximately 3.2 million shares of Akamai common stock. Based on a current price of about $55 a share, the deal would be worth close to $178 million. The acquisition is expected to close later this quarter, the companies said. Following yesterday's announcment of the Netli acquisition, Akamai's stock fell about 5% in mid-day trading today, to about $55.50 from $58.
"Akamai and Netli both emphasize leading-edge technology to help businesses deliver more effective, higher performing online applications, and we are confident that this combination will benefit our customers, employees, and shareholders,” says Paul Sagan, Akamai president and CEO.
Gary Messiana, CEO of Netli, adds, "By joining forces with Akamai to address the large and quickly expanding application acceleration market, we believe our customers will gain access to an even larger global network and a wider portfolio of leading-edge services supported by a combination of the most experienced providers in the industry."
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