"Edgio stands to be a recognized leader in delivering digital solutions natively at the edge, and Apollo is very excited to participate in this shared vision," said Apollo Partner Reed Rayman, who will join the company's board of directors. Additionally, the $30 million cash investment by Apollo Funds further strengthens the balance sheet to support continued growth initiatives.īased on these drivers, Edgio will continue building growth and profitability momentum in the near term toward its longer term strategic target of a balanced rule-of-40 performance. Edgio expects to achieve approximately half of the $50 million in synergies in the first two quarters after closing. Profitability will benefit from annual run-rate cost synergies of greater than $50 million, including approximately $30-35 million of COGs related to colocation and internet peering expenses, and approximately $15-20 million of operating expense savings. On a pro-forma basis, the largest client will be approximately 13% of revenue, with no other client exceeding 10%. The expansion of cross- and up-sell opportunities coupled with increased channel capabilities support planned growth improvements.
These unique capabilities create a robust platform for growth and profitability," said Bob Lyons, CEO of Edgio.īuilding on this platform, Edgio will immediately improve its revenue profile to include a balance of both usage-based and SaaS-like margin profiles. Edgio now boasts the most complete edge-native web application and API solution, best-in-class streaming and delivery capabilities – all running on the world's most performant globally-scaled edge network. Today marks a meaningful step in our ability to address this need. "In a world where digital workloads and their consumers are increasingly distributed, the ability for companies to deliver exceptional digital experiences requires them to more productively build faster and safer solutions for their customers at the edge. Edgio now delivers about 20% of the world’s internet traffic from instant-loading websites to high-demand content for 20,000 leading digital companies such as Amazon, Sony, Kate Spade, Microsoft, Sun TV, Verizon, Disney, TikTok and Twitter. The combined company will operate as Edgio, delivering significantly increased scale and scope with diversified revenue across products, clients, geographies and channels, and an expanded total addressable market of $40 billion.Įdgio solutions combine the power of the world's best performing edge platform with the most complete set of capabilities for web applications, APIs and video content – continuing on its strategy to improve profitability and growth.
REED RAYMAN SOFTWARE
(Nasdaq: EGIO), the globally-scaled software solutions provider powering secure seamlessly integrated delivery, applications and streaming experiences at the edge, today announced the successful completion of Limelight’s acquisition of Edgecast. TEMPE, Ariz., June 16, 2022-( BUSINESS WIRE)-Edgio, Inc. Stronger balance sheet and Board with Apollo Funds/Yahoo’s investment Improved profitability underwritten by greater than $50 million of run-rate cost synergies and meaningful revenue diversification Poised for growth with the most complete edge native solution to deliver the fastest web applications on the planet, in a high growth $40 billion market
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