EyeWonder's shareholders at closing will be paid approximately $110 million, including approximately $62 million in cash

December 21, 2009

2 Min Read

TEMPE, Ariz., and ATLANTA -- Limelight Networks, Inc. ( NASDAQ:LLNW - News) today announced a definitive agreement to acquire privately held EyeWonder, Inc. The transaction is expected to close in the first half of 2010.

"Today, two best-in-class companies are combining to capitalize on the clear opportunity created by a macro shift of content consumption and advertising spend away from legacy channels and towards the growing world of Internet-connected devices. Limelight and EyeWonder bring together deep technical and operational skills for creating a brilliant online experience anywhere, on any device, and the ability to help advertisers and publishers monetize that experience," said Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. "We believe joining forces with the EyeWonder team will help us build long-term value for our shareholders and further establish Limelight Networks as an important, at-scale participant in the rapidly growing rich media, video, mobile, and web TV advertising sectors."

Since 1999, EyeWonder has been an innovator in developing monetization solutions that helps Forbes 2000 advertisers, interactive agencies and content publishers create, build, track and optimize rich media and interactive video advertising campaigns. EyeWonder's advertising serving platform is projected to service over $500 million in media spend globally in 2009, helping stakeholders across the digital advertising ecosystem to realize increased return-on-investment from that spend.

The combination of EyeWonder's value-added monetization solutions and Limelight Networks' delivery, storage, management and consulting services will enable enterprises, agencies and content publishers to unlock the value of their online content and maximize the revenue and profitability of their online strategies. The combined company will have relationships with over 2500 online businesses, over 800 interactive agencies, 900 last-mile access networks and over 20 ecosystem partners who, together, will working toward building a more efficient and intelligent Internet.

"Today's announcement represents the next step in the growth and success of online advertising and in realizing the vision EyeWonder was founded with ten years ago. Limelight Networks and EyeWonder have worked together as partners for years, and have shared a passion for helping publishers of all types better monetize their content. By combining and integrating each company's distinctive areas of expertise, we will create unique and independent service offerings that will deliver exceptional value to our clients and partners," said John Vincent, founder and chief executive officer, EyeWonder, Inc.

The consideration to be paid to EyeWonder's shareholders at Closing will equal approximately $110 million, comprised of approximately $62 million in cash (subject to adjustment based on EyeWonder's financial condition at Closing) and approximately 12.74 million shares of Limelight common stock. Up to approximately 4.86 million additional shares of Limelight common stock will be issuable in 2011 if EyeWonder achieves certain financial results in 2010. EyeWonder was advised on the transaction by Madison Alley Global Ventures.

Limelight Networks Inc. (Nasdaq: LLNW)

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