By Dawn Kawamoto, 21 November 2006 08:35
NEWS
Akamai Technologies has signed an agreement to buy streaming-media tools developer Nine Systems in a deal valued at nearly $160m.
Under the deal, Akamai will pay roughly $7m in cash and about 3.1 million Akamai shares to shareholders of privately held Nine Systems.
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Shares of Akamai, which sells services that accelerate the transmission of data, content and business applications over the web, closed at $49.25 on Friday. That closing price would value the stock part of the deal at about $152.7m.
The deal is designed to provide customers of Akamai with Nine's web-based tools, enabling them to produce, publish and distribute their own streaming and downloadable media over Akamai's network.
Paul Sagan, Akamai's chief executive, said in a statement: "Integrating [Nine Systems'] 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 business."
The deal is expected to close by the year's end.
Dawn Kawamoto writes for CNET News.com
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