MUMBAI: Akamai Technologies, Inc. and Nine Systems Corp., Inc. have announced that the two companies have signed a definitive agreement for Akamai to acquire Nine Systems in a merger transaction.
The closing of the transaction, which is subject to customary closing conditions, including the approval of Nine Systems' stockholders, is expected by year-end. The acquisition is expected to be accretive to Akamai earnings on a normalised, diluted per share basis in 2007, asserts an official release.
Akamai plans to integrate Nine Systems' stream OS, a suite of configurable rich media management tools that enable easy production and publishing of content online, into the global Akamai network.
Akamai president and CEO Paul Sagan said, "We are excited about offering a new and comprehensive solution for the delivery, management, and control of online media assets."
"Nine Systems has established itself as a leader in the creation of powerful Web-based tools for businesses to easily produce, publish, and distribute their streaming and downloadable media. Integrating Stream OS into our delivery network will allow Akamai to more fully support asset control, rights management, and media reporting to better enable our customers' digital media businesses," he added.
Nine Systems president and CEO Troy Snyder said, "Nine Systems' rich media publishing and management tools already power the online media experience for some of today's best known companies in the music, broadcast, sports, entertainment, inspirational, advertising, education, and government markets. By joining forces with Akamai, our customers will have access to the leader in accelerating content and applications online, supported by a combination of the most experienced teams in the industry."
Under terms of the agreement, Akamai will acquire all of the outstanding common stock, preferred stock, and vested and unvested stock options of Nine Systems by issuing approximately 3.1 million shares of Akamai common stock and approximately $7 million in cash, subject to certain closing adjustments. The merger transaction is expected to be accounted for by Akamai under the purchase method of accounting, further adds the release.
