Akamai Technologies, Inc. and Nine Systems Corp., Inc. have announced that the two companies have signed a definitive agreement for Akamai to acquire Nine Systems in a merger transaction. The closing of the transaction, which is subject to customary closing conditions, including the approval of Nine Systems' stockholders, is expected by year-end. The acquisition is expected to be accretive to Akamai earnings on a normalized, diluted per share basis in 2007. The acquisition of Nine Systems provides Akamai with a rich media management framework upon which services can be built to enable customers to control and monetize their digital assets.
Akamai plans to integrate Nine Systems' Stream OS, a suite of configurable rich media management tools that enable production and publishing of content online, into the global Akamai network. Under terms of the agreement, Akamai will acquire all of the outstanding common stock, preferred stock, and vested and unvested stock options of Nine Systems by issuing approximately 3.1 million shares of Akamai common stock and approximately $7 million in cash, subject to certain closing adjustments. The merger transaction is expected to be accounted for by Akamai under the purchase method of accounting.