Confirming an earlier report on Sunday by TechCrunch, a press release from Verizon Communications Inc confirmed its definitive plans to purchase content delivery network EdgeCast Networks. The US telecommunications company will reportedly combine EdgeCast to its Verizon Digital Media Services to improve the former's ability to capitalize on the growing demand in online digital media content.
No financial details were disclosed in the press release, but Verizon said the acquisition is expected to be finalized in early 2014. The company had tapped LionTree Advisors LLC as its financial adviser for the transaction.
Verizon Digital Media Services president Bob Toohey said, "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. 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."
The consolidation of EdgeCast to Verizon also came at a bonus. TechCrunch pointed out that EdgeCast has over 6,000 accounts and provides services to the leading brands in the world for global media delivery and acceleration services.
EdgeCast chairman and chief executive officer Alex Kazerani said about the acquisition, "Having journeyed from startup 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."
Since its establishment in 2008, the content delivery network had grown to be the top fastest-growing Web company last year and was among North America's fastest-growing technology, media, telecommunications, life sciences and clean technology companies in terms of its fiscal year revenue growth percentage from 2008 to 2012. EdgeCast also was recognized as part of Deloitte Technology Fast 500 index for the second consecutive year.
Join the Conversation