Akamai Technologies has agreed to pay $125 million for customer contracts associated with Edgio’s security and content delivery businesses, along with non-exclusive license rights to its entire patent portfolio. A judge overseeing Edgio’s bankruptcy case has approved all bids for the company’s assets.
However, the acquisition does not include any assets related to Edgio’s network. Akamai has stated that it will provide further details on the expected financial impact of the transaction, which is expected to close in the fourth quarter of 2024.
Notably, Lynrock Lake Star LLC has agreed to pay $43.5 million for the Uplynk/Media Business Assets. Meanwhile, an affiliate of InterDigital, Inc., RNC Holdings, Inc., will purchase the intellectual property rights held by Edgio, excluding those related to the Uplynk/Media Business Assets, for $4.25 million.
As part of its Chapter 11 bankruptcy sale, Akamai Technologies had successfully placed a bid for selected assets from Edgio. The auction was concluded on November 13, 2024, and was conducted under the 363 bankruptcy sale process. With a hearing set for November 25, 2024, the sale was awaiting court approval.
Edgio was established in 2022 following Limelight Networks’ acquisition of Edgecast from Yahoo and Apollo Global Management, with the newly formed company rebranding that same year. However, in early September, Edgio voluntarily filed for Chapter 11 bankruptcy. The company is a preferred content delivery network (CDN) for numerous telecommunications providers and broadcasters worldwide, who use it as part of their multi-CDN strategies.