Telco Operator KDDI To Acquire Content Delivery Company CDNetworks For $167M
Asian telcom provider KDDI has announced it will spend $167M to buy an 85.5% stake in content delivery company CDNetworks. The company said it will use the acquisition to strengthen its online content distribution services in Asia. CDNetworks did about $99M in revenue last year and said that revenue has grown 20% a year since 2007. CDNetworks had been looking for a buyer for over a year, so the deal really doesn't come as much of a surprise and it makes sense that a company based in Asia would be the likely buyer. Last year, CDNetworks changed the focus of their company from delivering video and CDN services to focusing mostly on web acceleration solutions.