Term Sheet

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Source: Verizon paying $390 million for Edgecast

December 9, 2013: 12:46 PM ET

Verizon bulks up its content delivery business with Edgecast purchase.

130904091652-verizon-logo-620xa
FORTUNE --¬†Verizon (VZ) this morning announced an agreement to purchase EdgeCast, a Santa Monica, Calif.–based provider of content delivery networks for such clients as Twitter (TWTR) and Hulu.

No financial terms were disclosed, but Fortune has learned that the purchase price is around $390 million. This apparently includes some cash that Edgecast still hasn't spent from a $54 million funding round that closed this past summer.

Word is that Edgecast had been prepping for a 2015 IPO, and that it was profitable with around a $100 million revenue run rate. But Verizon swept in with an offer the company couldn't refuse. Not terribly surprising from a synergy standpoint – although Edgecast does have a small reseller business that may be difficult to maintain.

Very big win for Edgecast's VCs, who put in a total of $74 million (including the Series D). Namely Menlo Ventures (largest shareholder) and Steamboat Ventures (first institutional backer). It also will be a positive return for Performance Equity Management, which led the latest round.

Sign up for my daily email newsletter on deals and deal-makers: GetTermSheet.com

Join the Conversation
About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

Email a Tip | @danprimack | RSS
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.