Akamai Technologies Buys Lumen's Select Customer Contracts, Sees FY24 EPS & Revenue Accretion
Portfolio Pulse from Lekha Gupta
Akamai Technologies Inc (AKAM) has acquired select Content Delivery Network contracts from Lumen Technologies Inc (LUMN). The acquisition is expected to add around $40 million-$50 million in revenue and be accretive to adjusted EPS by $0.08-$0.12 for FY24. Both companies will operate under a transition services agreement for the first 90 days, after which Lumen plans to wind down its content delivery services. No material impact of the acquisition on FY23 results is expected.
October 10, 2023 | 5:06 pm
News sentiment analysis
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POSITIVE IMPACT
Akamai's acquisition of select CDN contracts from Lumen is expected to boost its revenue and EPS in FY24. The company's stock is trading higher.
The acquisition is expected to add significant revenue and EPS to Akamai's FY24 results, which is likely to be viewed positively by investors and could drive the stock price up.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Lumen has sold select CDN contracts to Akamai and plans to wind down its content delivery services. The company's stock is trading higher.
The sale of CDN contracts to Akamai and the plan to wind down content delivery services could be part of a strategic shift for Lumen. The market seems to react positively to this news, as indicated by the increase in the company's stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100