Akamai to acquire Verivue to pave way for licensed CDN
CDN provider Akamai has entered into an agreement to acquire US IP platform developer Verivue in a cash transaction for an undisclosed sum.
Akamai said that it expected the transaction to compliment its network solutions portfolio and accelerate the time to market for its licensed CDN solution for network operators.
Verivue, which is headquartered in Westford, MA, and has 60 employees, develops and market IP platforms designed to enable network operators to distribute, deliver and control large amounts of IP-based media traffic.
The company also offers CDN solutions for service providers designed to accelerate content delivery for managed and unmanaged networks.
"Verivue has done an impressive job of building a licensed content delivery infrastructure and getting it deployed with several important operators," said Mick Scully, VP and general manager, carrier products division at Akamai. "We believe that Verivue's technology will complement our roadmap for creating a comprehensive operator CDN solution.
The move is backed by research from IDC which states that network operators worldwide are looking to utilise on-net CDNs to improve the performance of their digital cable and IPTV services and expand their multi-screen offerings.
James Dolce, CEO of Verivue, said that by working with Akamai the two could produce the industry’s most powerful, extensible and fully integrated operator CDN platform.
The transaction is subject to customary conditions and is expected to close by the end of the year.
"Overall, we see the acquisition as a win for the two companies and their potential customers. Both Verivue and Akamai have a few customers in the carrier space and they seem to complement each other. As a combination they may well continue to demonstrate the credibility other carriers expect," said Paris Burstyn, senior analyst, wholesale telecoms at Ovum.