Verizon Communications has agreed a takeover of content delivery networks specialist EdgeCast for an undisclosed fee.
The company develops technology that speeds up the delivery of content over internet networks and competes against the better-known Akamai Technologies (Cambridge, MA, USA) in this market.
Verizon (New York City, NY, USA) said it planned to use EdgeCast’s (Santa Monica, CA, USA) technology to broaden the portfolio of site acceleration services its Digital Media Services business sells to digital enterprises.
“EdgeCast’s industry-leading technology and strategically placed assets, combined with Verizon Digital Media Services’ video solutions, improves our ability to deliver the rich, reliable and quality digital media services that our customers have come to expect,” said Bob Toohey, president of Verizon Digital Media Services.
EdgeCast currently serves more than 6,000 accounts including what it says are some of the world’s leading web brands for acceleration services.
According to Dow Jones Newswires, the company has been profitable for several years and manged to raise $54 million during a funding round in July.
Proceeds were used to hire more staff and develop its international footprint.
“Having journeyed from startup to technology leader in a short seven years, the time is right for EdgeCast to elevate itself again by joining Verizon to continue our innovation and growth,” said Alex Kazerani, EdgeCast’s chairman and chief executive.
The purchase of EdgeCast appears to complement the takeover of upLynk by Verizon Digital Media earlier this year.
upLynk develops technology for streamlining the uploading and encoding of video for live, linear and video-on-demand content, and Verizon says the combination of this technology with EdgeCast’s will provide a further boost to Digital Media Services.
The takeover has already won approval from the boards of directors of Verizon and Edgecast, and Verizon says it aims to complete the transaction in early 2014.