TEMPE, AZ and ATLANTA, GA -- (MARKET WIRE) -- 12/21/09 --
Limelight Networks, Inc. (NASDAQ: LLNW) 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.
Certain key employees of EyeWonder will also enter into employment
arrangements with Limelight that will involve additional equity
compensation. The closing of the transaction is subject to customary
closing conditions, including the effectiveness of a registration statement
to be filed with the Securities and Exchange Commission relating to the
transaction, and approval of Limelight Networks and EyeWonder's respective
stockholders at stockholder meetings following distribution of a definitive
joint proxy statement.
Conference Call
At approximately 8:00 a.m. ET (5:00 a.m. PT) today, executives from both
companies will host a conference call for investors to discuss this
transaction. North American participants can access this call by dialing
+1-800-920-4315. Participants outside of North America can dial
+1-212-231-2902. A replay of the call will be available from
http://www.llnw.com for one week following the conclusion of the event.
Additional Information and Where to Find It
Limelight Networks plans to file with the SEC a Registration Statement on
Form S-4 in connection with the transaction and plans to file with the SEC
and mail to its stockholders a Proxy Statement/Prospectus in connection
with the transaction. The Registration Statement and the Proxy
Statement/Prospectus will contain important information about Limelight
Networks, EyeWonder, the transaction and related matters. Investors and
security holders are urged to read the Registration Statement and the Proxy
Statement/Prospectus carefully when they are available. Investors and
security holders will be able to obtain free copies of the Registration
Statement and the Proxy Statement/Prospectus and other documents filed with
the SEC by Limelight through the web site maintained by the SEC at
www.sec.gov and by contacting Limelight Networks Investor Relations at
917-297-4241. In addition, investors and security holders will be able to
obtain free copies of the documents filed with the SEC on Limelight
Networks' website at www.limelightnetworks.com.
Participants in the Acquisition of EyeWonder
Limelight Networks, EyeWonder and their respective directors, executive
officers and certain other members of management and employees may be
deemed to be participants in the solicitation of proxies in respect of the
proposed transaction. Information regarding these persons who may, under
the rules of the SEC, be considered participants in the solicitation of
Limelight Networks stockholders in connection with the proposed transaction
will be set forth in the Proxy Statement/Prospectus described above when it
is filed with the SEC. Additional information regarding Limelight Networks'
executive officers and directors is included in Limelight Networks'
definitive proxy statement, which was filed with the SEC on April 27, 2009.
You can obtain free copies of these documents from Limelight Networks using
the contact information above.
About Limelight Networks, Inc.
Limelight Networks, Inc. (NASDAQ: LLNW) is trusted by the world's most
innovative enterprise, entertainment, technology, and software brands to
improve the performance and profitability of web sites and end-user
experiences. Our scalable, on-demand managed infrastructure solutions
provide global reach and consistent high availability, by routing traffic
over a private fiber-optic backbone rather than through the
often-congested, unpredictable public Internet. For more information, visit
our web site
(http://www.limelightnetworks.com), read our blog
(http://blog.llnw.com), or follow @llnw
(http://www.twitter.com/llnw) on Twitter.
About EyeWonder, Inc.
EyeWonder, Inc. is the pioneering interactive digital advertising provider,
extending the reach of online rich media and interactive video ads to
digital device displays. Through its superior technology, products and
services, EyeWonder empowers advertisers, advertising agencies and content
publishers with the ability to create, build, deliver, track and optimize
interactive advertising campaigns proven to drive industry-leading results.
Headquartered in Atlanta, Georgia, U.S.A., EyeWonder, Inc. has domestic
offices in New York, Chicago, San Francisco, Dallas and Los Angeles.
International offices are located in the United Kingdom, Ireland, the
Netherlands, Germany, Spain and Australia. For more information on the
company's interactive digital advertising solutions or its global office
network, please visit
http://www.eyewonder.com or follow us on Twitter www.twitter.com/_ew.
Safe-Harbor Statement
This press release includes "forward-looking statements" within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include, but are not limited
to, statements relating to the timing of the merger and satisfaction of
conditions to the merger, You should be aware that the forward-looking
statements included herein represent the current judgment and expectations
of the Limelight Networks and EyeWonder, but the actual results, events and
performance of each company and of the combined company following the
merger are subject to risks and uncertainties and could differ materially
from those expressed or implied by forward-looking statements. The
companies do not intend to update any of these forward-looking statements
or publicly announce the results of any revisions to these forward-looking
statements, other than as is required under the federal securities laws.
The potential risks and uncertainties include, but are not limited to:
potential difficulties that may be encountered in integrating the merged
businesses; potential uncertainties regarding market acceptance of the
combined company; uncertainties as to the timing of the merger, approval of
the transaction by the stockholders of the companies and the satisfaction
of other closing conditions to the transaction, including the receipt of
regulatory approvals; competitive responses to the merger; an economic
downturn; variability in quarterly operating results, the rate of growth
and development of advertising and media markets and Limelight Networks'
ability to attract and retain skilled personnel and develop leaders.
Copyright © 2009 Limelight Networks, Inc. All rights reserved. All
product or service names are the property of their respective owners
Contacts:
Paul Alfieri
Limelight Networks, Inc.
+1-917-297-4241
Email Contact
Mike Griffin
EyeWonder
+1-678-891-2046
Email Contact