Verizon is acquiring content delivery specialist EdgeCast in a deal that greatly improves Verizon Digital Media Services' end-to-end services. Both company's boards have approved the acquisition, which Verizon hopes to finalize in early 2014.
“The combination of EdgeCast and Verizon Digital Media Services will allow us to fully exploit and accelerate growth in Internet media consumption and online business performance,” said Bob Toohey, president of Verizon Digital Media Services. “EdgeCast’s industry-leading technology and strategically placed assets, combined with Verizon Digital Media Services’ video solutions, improves our ability to deliver the rich, reliable and quality digital media services that our customers have come to expect.”
Verizon Digital Media Services will integrate EdgeCast complementary capabilities to further improve and increase its ability to meet the exponential growth in online digital media content, as well as broaden its portfolio of site acceleration services for digital enterprises. This acquisition will further strengthen Verizon Digital Media Services’ ability to deliver content and site acceleration services to customers that include studios, broadcasters, retailers and enterprises seeking quality high-performance digital experiences across all devices.
EdgeCast has more than 6,000 accounts and serves some of the largest Web brands for global media delivery and acceleration services.
Strong growth for EdgeCast
Last July, EdgeCast raised $54 million in new financing to continue its aggressive expansion. EdgeCast added more than 2,000 customers in the past year prior to this financing, and the company has been profitable for four consecutive years. Under Verizon, it will have all the financial resources it needs to continue its impressive growth.
“Having journeyed from start up to technology leader in a short seven years, the time is right for EdgeCast to elevate itself again by joining Verizon to continue our innovation and growth,” said Alex Kazerani, EdgeCast chairman and chief executive officer.
Both companies deliver advanced video solutions and share a common architectural approach to video-optimized networks.
Earlier this year, Verizon Digital Media Services announced the acquisition of upLynk assets, with technology that streamlines the process of uploading and encoding of video. The combination of Verizon, upLynk and EdgeCast further boosts performance of Verizon Digital Media Services’ end-to-end services.
Verizon’s financial advisor for this acquisition was LionTree Advisors LLC.