Akamai Technologies (AKAM, Financials) received approval from the U.S. Bankruptcy Court for the District of Delaware to acquire select assets from Edgio, including customer contracts in content delivery and security, and non-exclusive license rights to certain patents; AKAM stock is up 1.2% following the news.

The purchase excludes Edgio staff, technology, or assets connected to networks.

The court's permission follows Akamai's submission of the winning offer for these assets at Edgio's bankruptcy auction on Nov. 13. Edgio is in Chapter 11 bankruptcy, and the assets fit there. Assuming normal closing conditions, the deal is projected to occur in early December 2024.

Edgio clients will be allowed to transition to Akamai's infrastructure once Edgio shuts down its content delivery activities after the purchase. Akamai will give access to its complete array of cybersecurity and cloud services as well as assist these clients throughout the changeover. By mid-January 2025 Edgio is supposed to completely stop running its content distribution network.

For the fourth quarter of 2024, Akamai expects the acquisition to bring in $9-$11 million. The acquisition is estimated to be dilutive to non-GAAP net income per diluted share by $0.03-$0.05; planned transition services expenses range from $15-$17 million in the same timeframe. With $25-$30 million in transition expenditures and a projected accretive effect on non-GAAP net income per diluted share of $0.15 +/- 2025, Akamai expects $80-$100 million in extra revenue from the purchase.

Akamai agreed to pay Edgio's network certain running expenses until Edgio stops operations in early 2025.

AKAM stock is up 1.2% to $94.22 following the news.