The definitive agreement said Limelight will acquire Layer0 for about $32.5 million in cash and $22.5 million worth of common stock. Still, the deal is subject to adjustments.
The acquisition is a huge step for Limelight as it advances its strategy as an edge-enabled SaaS solutions provider.
Layer0, which is based in San Francisco, provides development, deployment and monitoring tools that deliver sub-second web apps and APIs through the all-in-one Jamstack platform, an architecture designed to make the web faster, more secure, and easier to scale.
The acquisition will combine Limelight’s world-class global edge network with Layer0’s edge orchestration, application acceleration, and developer workflow capabilities, which will create a leading-edge solution and diversify Limelight’s client mix and services.
Several large brands will be added to the existing list of global companies that Limelight serves. Some of the brands include Coach, United Airlines, Revolve Fashion, Shoe Carnival, Kate Spade, Sharper Image, and several top 50 U.S. banks.
Bob Lyons, President and CEO of Limelight, said the capabilities the company will gain as part of the acquisition will accelerate the transition of Limelight into a leading edge SaaS provider.
“Together we will be able to drive better performance for our clients’ web applications, while improving developer productivity with our seamless end to end solution,” Lyons said in a statement. “We look forward to sharing additional details on these solutions on our earnings call and even more in depth at our upcoming strategy session on August 24.”
Ajay Kapur, co-founder and CEO of Layer0, said the company was founded with the mission to make the web instant and simple to manage.
“Developers want to deploy and run websites at the edge. Limelight has one of the best edge networks in the world,” Kapur said in a statement. “We are thrilled to join the team and deliver the best ‘developer’s edge network’ in the market.”
The transaction is expected to close in August.