Limelight Networks, Inc. (Nasdaq: LLNW), a leading provider of edge cloud services, 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.
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.
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“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.”
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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.
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