This morning Verizon announced an agreement to acquire privately held CDN provider EdgeCast Networks in a deal that is expected to close early next year. I’ve spoken to both companies about the deal and while neither side can comment on the value placed on EdgeCast, I hear it is close to $400M. EdgeCast was on track to end this year with $100M in revenue and was projected to do $140M in revenue next year. To date, the company had raised $74M in capital and has about 300 employees. (For my thoughts on how this deal impacts Akamai, see this post: Verizon’s Acquisition Of EdgeCast Isn’t Good For Akamai, Here’s Why)

EdgeCast was a profitable company and at a $400M evaluation, the company got 4x this year’s revenue. Not bad for a company that had only raised $20M in funding, up until five months ago when they raised $54M more. Verizon didn’t overpay on this deal but at the same time, EdgeCast got fair market value for what they have built.

To continue reading please follow the link below for the article byDan Rayburn | Monday December 9, 2013 |

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