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KDDI Buys CDNetworks

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10/17/2011
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TOKYO -- KDDI agreed with the shareholders of CDNetworks Co., Ltd. (Headquarters: Seoul, CEO: Samuyeol Ko, "CDNetworks"), a global Contents Delivery Network (CDN) service [1] provider, on strategic investment in the company.

Based on this agreement, KDDI will purchase 85.5% of common shares in CDNetworks for approximatelyUSD167 million (approximately JPY 12.8 billion) [2] in October 2011 and KDDI will embrace CDNetworks as one of KDDI family.

CDN services realize acceleration of Internet communication by temporary cache and delivery of contents in servers which are located closer to the end users. The services are now essential for Internet providers to offer their users stress-free and comfortable services and contents. CDNetworks operates its CDN business in 70 cities in 31 countries [3], focusing on Korea, Japan, China, the United States and Europe. CDNetworks is highly competitive in Asia, which is a rapid growing field of the Internet related business.

KDDI will add new value, combining high-quality Internet network and CDN services, to various Internet service providers including contents providers through the strategic investment in CDNetworks. In addition, KDDI will realize offload of further increasing mobile traffic and build up the network environment suitable for the smartphone era by adding CDN services in KDDI’s mobile platform.

KDDI Corp.

CDNetworks Co. Ltd.

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