Limelight buys Clickability for $10 million
Clickability, a web content management product sold in the Software as a Service (SaaS) model was sold Monday to Limelight Networks for $10 million--cheap money in the scheme of things and an interesting pickup for Limelight, which helps companies deliver video over the web using a content delivery network (CDN).
According to a statement released by Limelight, Clickability was founded in 1999, but has only 60 customers, although among them are popular sites such as PR Newswire and the Minneapolis Star Tribune.
Limelight, which is primarily a video delivery platform sees this acquisition as a way to move into the lucrative and growing web content management space. Limelight chairman and chief executive officer, Jeff Lunsford is clearly excited by the possibilities Clickability brings to his company.
"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. Limelight has built a track record of successfully integrating other high-value, high-margin cloud-based services. We look forward to continuing that success with Clickability as they begin to leverage our technical and operational infrastructure," Lunsford said in a statement.
In spite of getting $15 million in venture funding over time, the company was sold for only $10 million, meaning that it's likely there are a bunch of venture capitalists who aren't very happy this morning.
As Tony Byrne wrote on Twitter: "WCM Vendor Clickability took in $15.3m in VC funding, but sold for $10m. Lesson: Investors can get itchy and bail."
The Clickability website is already showing that it is part of Limelight.
For more information:
- see the Limelight press release