Web streaming and online networking giant Akamai is acquiring content delivery network operator firm Verivue for an undisclosed cash transaction.
While the terms of the deal have not been disclosed, Akamai said it sees the acquisition as a way to boost and complement its Aura Network Solutions product line of managed content delivery network provisions, designed for network operators in mind.
"Verivue has done an impressive job of building a licensed content delivery infrastructure and getting it deployed with several important operators," said Akamai vice president Mick Scully, in prepared remarks. "We believe joining forces with Verivue will allow us to help operators maximize content revenues and network efficiencies as the flood of media and video traffic increases."
"Operators are looking for services to drive revenue, such as advanced cloud capabilities or by providing licensed content to users on a variety of IP-connected devices," said Virivue chief executive James Dolce. "By combining our teams, we believe we can help meet this immediate market opportunity,"
Westford, MA.-based firm Verivue creates and builds high-performance platforms for network operators that enables the distribution and delivery of Internet-based media traffic over networks to a variety of devices. It's a provider of platforms for on-demand services such as television content and movie playback. It's what makes Hulu, Netflix or BBC iPlayer work, in effect.
Verivue has approximately 60 employees, which will move over to Akamai once the deal closes -- expected to be by the end of 2012.
While the price was not disclosed, last year Akamai bought Cotendo for $268 million, suggesting that a rival firm that would add valuable technology to Akamai's already burgeoning infrastructure may be worth in that same region.