Clickability bought for $10m

Fierce Content Management.

The inexpensive deal is said to be an interesting pickup for Limelight, a company which delivers video over the Web using a content delivery network.

Limelight chairman and CEO, Jeff Lunsford, says: “This acquisition expands Limelight's total addressable market in cloud-based services by $1 billion, and the Web content management segment is expected by Gartner to grow to $1.7 billion by 2014.”

Streaming Media.com states that San Francisco-based Clickability had previously raised more than $15 million in backing in a series of funding rounds in 2008, so the $10 million price tag is a surprise.

Limelight says it expects the Clickability business to add between $4.5 million and $5 million in revenue in the second half of this year.

The Clickability acquisition is likely to signal further earnings growth for Limelight, which posted first quarter revenue of $36 million, beating Wall Street forecasts of $34 million although it still posted an overall first quarter loss of $5.8 million.

Globe News Wire reveals that Jeff Freund, Clickability CEO says: “With the increasing demand from business buyers and consumers for more online content, the need for publishing and Web marketing capabilities to efficiently manage that experience increases.

“In joining Limelight, we will be able to accelerate our growth and product innovation cycle, as well as have additional resources and global cloud computing capacity to scale with our growing customer base.”