CAMBRIDGE, Mass., Dec. 5, 2012 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) today announced it has completed its acquisition of Verivue, a privately-held company based in Westford, Massachusetts that provides licensed content delivery network (CDN) infrastructure solutions for network operators. On November 13, 2012, Akamai announced a definitive agreement between the parties pursuant to which Akamai would acquire Verivue in a cash transaction.
The combination of the two companies' technologies and teams is expected to help Akamai accelerate market availability of a comprehensive portfolio of Operator CDN products.
"Network operators are turning to CDN technologies as a strategic and highly complementary way to offer new and differentiated content services, reduce network infrastructure costs, and ensure a quality experience for subscribers across a variety of IP-connected devices," said Paul Sagan, President and CEO of Akamai. "Since the launch of our Aura Network Solutions earlier this year, Akamai has been meeting with network operators worldwide. With our acquisition of Verivue now complete, we believe we are well-positioned to offer network operators a more robust, operator CDN solution as well as federation with the world's leading content delivery platform."The company does not expect the acquisition of Verivue to materially impact results of operations in the current quarter. Accordingly, Akamai will not be updating fourth quarter 2012 guidance as a result of this acquisition. The acquisition is expected to be slightly dilutive by approximately one cent on a normalized, diluted per share basis* in 2013. About Akamai Akamai ® is the leading cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere. At the core of the Company's solutions is the Akamai Intelligent Platform™ providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. Akamai removes the complexities of connecting the increasingly mobile world, supporting 24/7 consumer demand, and enabling enterprises to securely leverage the cloud. To learn more about how Akamai is accelerating the pace of innovation in a hyperconnected world, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter. *Use of Non-GAAP Financial MeasuresIn addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai has historically provided additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). Legislative and regulatory pronouncements discourage the use of and emphasis on non-GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. We believe that the inclusion of these non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our past performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts. Our management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. These measures are also used by management in its financial and operational decision-making. There are limitations associated with reliance on these non-GAAP financial metrics because they are specific to our operations and financial performance, which may make comparisons with other companies' financial results more challenging. By providing both GAAP (where available) and non-GAAP financial measures, we believe that investors are able to compare our GAAP results to those of other companies while also gaining a better understanding of our operating performance as evaluated by management. Akamai defines "normalized net income" as net income before amortization of other intangible assets, stock-based compensation expense, amortization of capitalized stock-based compensation, restructuring charges and benefits, acquisition related costs and benefits, certain gains and losses on investments, loss on early extinguishment of debt and gains and losses on legal settlements. Akamai considers normalized net income to be another important indicator of the overall performance of the Company because it eliminates the effects of events that are either not part of the Company's core operations or are non-cash.
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