SCOTTSDALE, Ariz., July 28, 2021 /PRNewswire/ -- Limelight
Networks, Inc. (Nasdaq: LLNW), a leading provider of edge cloud
services, today announced that it has entered into a definitive
agreement to acquire Moov Corporation, which does business as
Layer0. This acquisition is a significant step in advancing
Limelight's strategy as an edge enabled SaaS solutions provider and
will drive growth in revenue, margins and EBITDA.
Layer0 provides development, deployment and
monitoring tools that deliver sub-second web apps and APIs
through an all-in-one Jamstack platform.
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The acquisition will combine the benefits of
Limelight's world class global edge network with Layer0's edge
orchestration, application acceleration, and developer workflow
capabilities to create a leading-edge solution while diversifying
Limelight's client mix and services. With this acquisition, several
leading brands will be added to the existing list of impressive
global companies served by Limelight such as Coach, United
Airlines, Revolve Fashion, Shoe Carnival, Kate Spade, Sharper Image, and several top 50 US
banks. Together, Limelight and Layer0 will offer clients a
unique solution set that delivers unmatched performance. The
acquisition will allow developers the ability to access the edge
platform to preview content and deploy their applications
instantaneously, while incorporating basic security needs such as
web application firewall, DDoS and threat detection.
"We are excited to announce the acquisition of Layer0. The
technology and development capabilities we are gaining will allow
us to meaningfully accelerate our ability to transition Limelight
to a leading edge SaaS provider," said Bob Lyons, President and Chief Executive Officer
of Limelight. "Together we will be able to drive better performance
for our clients web applications, while improving developer
productivity with our seamless end to end solution. We look forward
to sharing additional details on these solutions on our earnings
call and even more in depth at our upcoming strategy session on
August 24th."
"Layer0 was founded and led by engineers whose mission is
to make the web instant and simple to manage," said Ajay
Kapur, Co-Founder and Chief Executive Officer of Layer0.
"Developers want to deploy and run websites at the edge. Limelight
has one of the best edge networks in the world. We are thrilled to
join the team and deliver the best 'developer's edge network' in
the market."
Under the terms of the definitive agreement, Limelight will
acquire Layer0 for approximately $32.5 million in cash and $22.5 million worth of common stock, subject
to customary adjustments for transactions of this nature. The per
share portion of the stock consideration will be based on the
volume-weighted average price of a share of common stock over the
twenty (20) consecutive trading day period ended on and
including the third trading day immediately prior to the date of
the Closing. Limelight will also establish a retention pool of
$30 million worth of restricted stock
units to be granted to the Layer0 team, with one-third of those
RSUs subject to service-based vesting and the remainder subject to
the achievement of certain financial and operational metrics.
The transaction is subject to certain customary closing
conditions and is expected to close in August 2021.
Investor Conference Call
Limelight management will host its quarterly earnings conference
call on Thursday, July 29, 2021 at 4:30
p.m. ET / 1:30 p.m. PT and
will discuss this transaction in further detail at that
time.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These statements include, among
others, statements regarding our expectations regarding revenue,
gross margin, non-GAAP net income (loss), capital expenditures,
timing of expected completion of the acquisition, and our future
prospects. Our expectations and beliefs regarding these matters may
not materialize. The potential risks and uncertainties that could
cause actual results or outcomes to differ materially from the
results or outcomes predicted include, among other things,
conditions to the closing of the acquisition may not be satisfied,
the potential impact on the business of Limelight due to the
announcement of the acquisition, the occurrence of any event,
change or other circumstances that could give rise to the
termination of the acquisition agreement, general economic
conditions, reduction of demand for our services from new or
existing clients, unforeseen changes in our hiring patterns,
adverse outcomes in litigation, and experiencing expenses that
exceed our expectations. A detailed discussion of these factors and
other risks that affect our business is contained in our SEC
filings, including our most recent reports on Forms 10-K and 10-Q,
particularly under the heading "Risk Factors." Copies of these
filings are available online on our investor relations website at
investors.limelightnetworks.com and on the SEC website at
www.SEC.gov. All information provided in this release and in the
attachments is as of July 28, 2021, and we undertake no duty
to update this information in light of new information or future
events, unless required by law.
About Limelight
Limelight Networks, Inc. (NASDAQ: LLNW) is an industry-leader in
edge access and content delivery services that provides powerful
tools and a customer-first approach to optimize and deliver digital
experiences at the edge. We are a trusted partner to the world's
biggest brands and serve their global customers with experiences
such as livestream sporting events, global movie launches, video
games or file downloads for new phone apps. Limelight offers one of
the largest, best-optimized private networks coupled with a global
team of industry experts to provide edge services that are fast,
secure and reliable. For more information,
visit www.limelight.com, and follow us on Twitter,
Facebook and LinkedIn.
Copyright (C) 2021 Limelight Networks, Inc. All rights reserved.
All product or service names are the property of their respective
owners.
Source: Limelight Networks
Ticker Slug:
Ticker: LLNW
Exchange:
NASDAQ
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SOURCE Limelight Networks