Ziff Davis is selling its Connectivity division, which includes Ookla's Speedtest and Downdetector, to Accenture for $1.2 billion. The sale allows Ziff Davis to focus on its media and enthusiast websites, and its shares rose over 60% on the news.
The Connectivity unit, built through acquisitions, generated $231 million in revenue last year. Accenture plans to use the acquired assets to offer network intelligence services for AI transformation.
The transaction is expected to close in the coming months, with proceeds used for Ziff Davis's general corporate purposes.
Main Topics: Corporate sale/acquisition, company strategy, financial performance, future business focus.
Ziff Davis has agreed to sell its Connectivity division, which houses Ookla's Speedtest app and Downdetector outage tracker, to Accenture for $1.2 billion in cash.
The sale, which also includes Ekahau and RootMetrics, will allow Ziff Davis âto focus â on â enthusiast websites like IGN and Mashable, as well as Everyday âHealth and iBuyNewCar.
Shares of Ziff Davis rose more than 60% âin early trading, while Accenture was flat.
The sale builds on a streamlining push under CEO Vivek âShah since 2017 through moves like the â 2021 Consensus âCloud spin-off and 2022 Policygenius insurance âbrokerage sale.
Proceeds from the transaction are expected to â be used for general corporate purposes and capital allocation activities, in line with the firm's debt agreements, Ziff Davis said.
Connectivity traces its roots to bolt-on acquisitions such as Ookla for $15 million in 2014 and RootMetrics in 2016. The unit capitalized on the global 5G rollout and pandemic-driven surge âin bandwidth demand, generating $231 million in revenue last year, or about 16% of Ziff Davis' total.
"With the Ookla â portfolio, we will offer end-to-end network intelligence services essential for AI-based transformation," said Manish Sharma, chief strategy and services officer, Accenture.
The âsale eyes closure in coming months, during which Ziff Davis will continue to operate the unit.
Evercore and Citi advised Ziff Davis on the transaction, with Kirkland & Ellis handling legal matters.
The sale, which also includes Ekahau and RootMetrics, will allow Ziff Davis âto focus â on â enthusiast websites like IGN and Mashable, as well as Everyday âHealth and iBuyNewCar.
Shares of Ziff Davis rose more than 60% âin early trading, while Accenture was flat.
The sale builds on a streamlining push under CEO Vivek âShah since 2017 through moves like the â 2021 Consensus âCloud spin-off and 2022 Policygenius insurance âbrokerage sale.
Proceeds from the transaction are expected to â be used for general corporate purposes and capital allocation activities, in line with the firm's debt agreements, Ziff Davis said.
Connectivity traces its roots to bolt-on acquisitions such as Ookla for $15 million in 2014 and RootMetrics in 2016. The unit capitalized on the global 5G rollout and pandemic-driven surge âin bandwidth demand, generating $231 million in revenue last year, or about 16% of Ziff Davis' total.
"With the Ookla â portfolio, we will offer end-to-end network intelligence services essential for AI-based transformation," said Manish Sharma, chief strategy and services officer, Accenture.
The âsale eyes closure in coming months, during which Ziff Davis will continue to operate the unit.
Evercore and Citi advised Ziff Davis on the transaction, with Kirkland & Ellis handling legal matters.
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