Akamai Technologies (Nasdaq: AKAM) said Tuesday it will acquire privately held Network24 Communications in a stock swap valued at about $200 million. The acquisition boosts Akamai's ability to deliver streaming media.
Akamai, a Web traffic management company, provides technology and services for the delivery of Internet content, streaming media and applications.
Under the deal, Akamai will issue shares of stock valued at $230 per share. The rest of the transaction will include $12.5 million in cash for a total value of $200 million. Network24 CEO Dan Fraisl still runs the company's operations.
Akamai said Network24 will extend its EdgeAdvantage platform to provide corporations, media, and entertainment companies the ability to conduct and manage live and on-demand Internet broadcasts.
Network24's technology enables customers to manage the audience, network and broadcast. Akamai said it will leverage Network24's technology across its network of 2,000 media servers on more than 100 networks in more than 40 countries.
Akamai, which went public in October priced at $26 and was up 1,000 percent for 1999, inked several streaming deals recently. On Tuesday, Voyager.net (Nasdaq: VOYN) said it would use Akamai's technology. The company also recently announced deals with NBCi (Nasdaq: NBCI) and PRIMUS Telecommunications Group (Nasdaq: PRTL) among others.
The company recently said its FreeFlow service has been selected by over 200 leading Web properties across all business sectors.