Limelight Acquires CMS Provider Clickability for $10 Million
Limelight Networks announced Monday that it has acquired content management system (CMS) provider Clickability for a total of $10 million in stock and cash. Clickability helps round out Limelight's non-CDN offerings, with the Limelight Video Platform—formerly Delve Networks, which the CDN acquired in 2010—at the center.
San Francisco-based Clickability had previously raised more than $15 million in backing in a series of funding rounds in 2008, so the $10 million price tag is a bit of a surprise. Limelight says it expects the Clickability business to add between $4.5 and $5 million in revenue in the second half of this year and to return value to shareholders in 2010.
Clickability, like Delve, is a cloud-based service, and Limelight chairman and CEO Jeff Lunsford said the acquisition allows Limelight customers to get a virtually complete content management and delivery solution without going to third-party vendors. In addition to Delve, Limelight acquired ad network EyeWonder for $110 million at the end of 2009.
Clickability was founded in 1999 and has a current client list that includes Cantor Fitzgerald, NBC, PR Newswire, and the Minneapolis Star Tribune.
The Clickability acquisition is likely to signal further earnings growth for Limelight, which posted Q1 revenue of $36 million, beating Wall Street forecasts of $34 million, although it still posted an overal Q1 loss of $5.8 million. Limelight says it expects Q2 revenue to be between $41 and $43 million, with Wall Street predicting $34.9 million.
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