NEW YORK (
Tuesday agreed to sell its EyeWonder rich media advertising technology unit to
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
is for revenue of $52.4 million in the company's fiscal third quarter ending in September.
Written by Michael Baron in New York.
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