Akamai to Acquire Speedera

Mar 18, 2005

Akamai Technologies, Inc. and Speedera Networks Inc. have signed a definitive agreement for Akamai to acquire Speedera in a stock-for-stock merger transaction. The closing of the transaction, which is subject to customary closing conditions, including regulatory approvals and the approval of Speedera's stockholders, is expected to occur in the second quarter of 2005. The acquisition is expected to be accretive on a normalized, diluted per share basis in 2005.

Under terms of the agreement, Akamai will acquire all of the outstanding common stock, preferred stock, and vested and unvested stock options of Speedera and its India-based, wholly-owned subsidiary by issuing approximately 12 million shares of Akamai common stock, which implies the transaction was valued at approximately $130 million based on the closing sale price of Akamai's common stock as reported on the Nasdaq Stock Market on March 15, 2005. The merger transaction is designed to be effected as a tax-free reorganization for Speedera stockholders and is expected to be accounted for by Akamai under the purchase method of accounting. All pending litigation between the two companies is stayed upon signing of the deal and will be formally dismissed when and if the deal is closed. Akamai was founded in 1998, and Speedera was founded in 1999.
(www.akamai.com; www.speedera.com)