By Stephen Nakrosis

Akamai Technologies said a bankruptcy court approved the company's bid to acquire certain assets from Edgio.

Akamai will acquire certain customer contracts from Edgio's content delivery and security businesses, along with non-exclusive license rights to patents in Edgio's portfolio, the company said Tuesday.

The transaction doesn't include the acquisition of Edgio personnel, technology or assets related to the Edgio network, Akamai said.

The cybersecurity and cloud computing company expects the deal will add about $9 million to $11 million in revenue in the fourth quarter, it said, adding the deal would likely be dilutive to non-GAAP net income per diluted share by about 3 cents to 5 cents in the period.

Akamai also agreed to pay certain costs for Edgio to operate its network during the transition and wind-down, which will cost about $15 million to $17 million in the fourth quarter.

For the full year 2025, the deal is expected to add approximately $80 million to $100 million in revenue, about $25 million to $30 million of transition service costs, and to be accretive to non-GAAP net income per diluted share by approximately 15 cents to 20 cents, Akamai said.

The transaction is expected to close in early December.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

November 26, 2024 18:11 ET (23:11 GMT)

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