Limelight Networks enters definitive agreement to acquire Layer0
At a Glance
Limelight Networks has announced its definitive acquisition agreement with Layer0, to purchase the latter in a cash and stock deal. The acquisition is aimed at making Limelight meaningfully transform into an edge SaaS provider and also driving its revenue, margins and EBITDA
Limelight Networks, a provider of edge and content delivery network services, has entered into a definitive agreement to acquire Layer0 for $32.5 million in cash and $22.5 million in common stock, a press release from Limelight Networks said.
Limelight stated that the acquisition would benefit its global edge network with Layer0’s edge orchestration, application acceleration, and developer workflow capabilities and help create a leading-edge solution. The acquisition would help Limelight advance its strategy as an edge-enabled SaaS solutions provider and drive revenue growth margins and its earnings before interest, taxes, depreciation and amortization (EBITDA, used as an indicator of overall business profitability).
The companies, in tandem, would offer developers and clients the ability to access the edge platform to preview content and deploy their applications instantaneously, without compromising security. Bob Lyons, president and CEO of Limelight, stated that the technology and development capabilities of Layer0 would allow Limelight to transform itself into an edge SaaS provider meaningfully and added,
Together, we will be able to drive better performance for our clients’ web applications while improving developer productivity with our seamless end-to-end solution. We look forward to sharing additional details on these solutions on our earnings call and even more in-depth at our upcoming strategy session on August 24.Bob Lyons, president and CEO of Limelight
The deal is likely to close in August 2021 post customary adjustments (if any). Commenting on the acquisition, Ajay Kapur, co-founder and CEO of Layer0, stated that Layer0 was founded and led by a team of engineers with a vision to make the web simple and easy to manage. Expressing delight at joining the Limelight team, Mr. Kapur added,
Developers want to deploy and run websites at the edge. Limelight has one of the best edge networks in the world. We are thrilled to join the team and deliver the best ‘developer’s edge network’ in the market.Ajay Kapur, co-founder and CEO of Layer0