Looking to boost its ability to deliver video and other forms of digital content via the cloud to a broad range of devices, Verizon Communication said Monday it has cut a deal to acquire EdgeCast Networks, a privately held content delivery network provider.
Financial terms were not disclosed financial terms, but TechCrunch reported Sunday that Verizon is paying more than $350 million for EdgeCast.
Per the agreement, Verizon Digital Media Services (VDMS), a division of Verizon that’s focused on cloud-based video service delivery, will integrate EdgeCast’s “complementary capabilities” and boost the unit’s ability to deliver online digital media content to multiple devices and broaden its portfolio of site acceleration services for digital enterprises.
EdgeCast has more than 6,000 accounts. Announced customers include the Indianapolis Colts, Atari, FilmOn, IMAX, JetBlue, Hulu, Twitter, Lifetime Networks, LinkedIn, Pinterest, as well as several carriers, including Canada’s Telus Communications, BT, and Deutsche Telekom.
In 2012, Motorola Mobility (Arris acquired its Motorola Home unit in April) signed a nonexclusive deal with EdgeCast that enabled Motorola to offer EdgeCast’s CDN solutions to cable operators and other service providers worldwide.
Verizon’s announced acquisition of EdgeCast acquisition comes just weeks after VDMS snapped up upLynk, a startup founded in 2012 that gives Verizon a framework that’s designed to simplify and streamline the process of uploading, encoding and inserting ads into TV Everywhere services. upLynk has been powering the suite of Watch Disney apps, as well as Watch ABC.
"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," said Bob Toohey, president of Verizon Digital Media Services, in a statement. "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."
Verizon, which tapped LionTree Advisors as its financial adviser on the deal, said it expects to close its acquisition of EdgeCast in early 2014.
Founded in 2006, EdgeCast has raised about $74 million. Its historic CDN competitors include companies such as Limelight Networks, Akamai Technologies, Level 3 Communications, and Alcatel Lucent. EdgeCast has raised $74 million.