Communications companies like AT&T, Sprint and others are beginning to understand the value of data transfer to their businesses.
So it’s not that surprising to hear the news that Verizon plans to acquire content delivery network EdgeCast.
The details of the sale have not been disclosed, but TechCrunch reports the deal may be worth more than $350 million.
More About EdgeCast’s Services
EdgeCast provides a global network of servers offering speed, security and scalability for websites of all sizes, according to the company’s website.
The company’s services are supposed to allow even the smallest Web-based businesses to grow and smoothly handle increases in traffic. Other services include protection from cyber attacks and the ability to use complex Web applications without performance issues, the EdgeCast website explains.
The company has built a reputation on helping online startups and smaller companies without their own network resources handle changes in their digital content demands as they grow. Here’s an overview by Ted Middleton, Vice President of Product Marketing for EdgeCast.
Verizon expects the acquisition to strengthen its ability to handle content, particularly for its business customers. In an official announcement on the company’s website, Bob Toohey, president of Verizon Digital Media Services says:
The combination of EdgeCast and Verizon Digital Media Services will allow us to fully exploit and accelerate growth in Internet media consumption and online business performance. EdgeCast’s industry-leading technology and strategically placed assets, combined with Verizon Digital Media Services’ video solutions, improves our ability to deliver the rich, reliable and quality digital media services that our customers have come to expect.
Verizon says it intends to integrate EdgeCast’s services into its own, but has not been specific about whether the company’s existing services will also remain in tact.
Founded in 2006 and based in Santa Monica, Calif., EdgeCast has grown to nearly 300 employees and serves about 6,000 customers worldwide.
Verizon Communications Inc. is headquartered in New York City and delivers business solutions to clients in 150 countries. The company employees a workforce of 178,300.