The two companies will merge to form a software solutions provider with pro forma revenue of more than $500 million in 2021 across cloud security and web apps, content distribution, and an edge video platform.
Limelight will rebrand as Edgio in anticipation of the acquisition, which will also be the name of the combined firm after it closes.
"By combining Limelight and Edgecast, we'll be able to create a powerful application, content, and video edge-enabled solutions firm that improves customer performance and productivity and security for the outcome buyer,” said Limelight CEO Bob Lyons in a statement. “Together we have a strong value proposition to serve the fast-growing, yet fragmented edge solutions market and our combined capabilities will accelerate our ability to capture more share of this high growth $40 billion total TAM. In six short months we have taken our TAM from $12 billion to $40 billion and with the acquisition of Edgecast, we are further accelerating and solidifying our ability to be recognized as a leader in edge software solutions for the outcome buyer.”
Yahoo CEO Jim Lanzone stated in a statement, "We are focused on driving value creation for our business and customers." "By spinning off Edgecast and merging with Limelight, the new company will become the market leader in the large and developing edge solutions industry right away." I am confident in the combined company's value and strength, as well as the growth it will bring to Yahoo, Edgio, and Apollo."
"Evolving consumer demand for faster speed, improved security, and higher-quality digital content has fundamentally changed how and where organizations give value to end users online," said Apollo Partner Reed Rayman, who will join the combined company's Board of Directors. "As the market continues to innovate and expand at a rapid pace, the combination of Limelight and Edgecast will have a significant impact and scale to capitalize on these trends and better serve its clients. We believe this is a transformative transaction and are thrilled to back this management team as shareholders and board members to support Edgio in its exciting next phase.”
