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Limelight Sells EyeWonder Unit for $66 Million

NEW YORK ( TheStreet) -- Limelight Networks (LLNW - Get Report) Tuesday agreed to sell its EyeWonder rich media advertising technology unit to DG Fastchannel (DGIT) for $66 million in cash after adjustments.

The deal is expected to close on Sept. 1, and Limelight shares surged in pre-market action. The stock was last quoted at $2.64, up 6.5%, on volume of less than 100,000.

Tempe, Ariz.-based Limelight also said its board has approved a $25 million buyback program, a move it said "reflects our confidence in the growth opportunities ahead for our CDN [content delivery network] and SaaS [software as a service] businesses."

Limelight also adjusted its outlook, saying it now sees revenue of $46.1 million to $47.3 million in its fiscal third quarter, including EyeWonder sales through the end of this month. Excluding EyeWonder, the company sees revenue of $41.5 million to $42.5 million for the quarter.

The company also said it expects transaction and severance-related expenses of $1.6 million during the quarter.

The current average estimate of analysts polled by Thomson Reuters is for revenue of $52.4 million in the company's fiscal third quarter ending in September.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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