Wednesday, March 28, 2007

Limelight IPO: $200M raise

From BizJournals:

"Limelight Networks Inc., a delivery network for Internet content providers, has filed for an initial public offering.

The Tempe company's filing with the U.S. Securities and Exchange Commission indicated the offering could total as much as $201 million, however, pricing and the number of shares to be sold have not yet been determined.

The company expects to receive up to $140 million of the proceeds, which are earmarked for capital expenditures, working capital, debt payoff and possible acquisitions, according to the filing. Selling stockholders would receive the remainder of the offering proceeds.

Limelight was founded in 2001 and as of March 1 had 158 employees. It delivers content digitally for traditional and emerging media companies in industries from television and music to magazine, movies and software. Using Limelight's delivery network, clients then provide their end-users with content, including video, music, games, software and social media.

Company revenue has grown from $11.2 million in 2004 to $21.3 million in 2005 and $64.3 million in 2006.

The company posted six-figure net income in both 2004 and 2005 but a $3.7 million loss last year.

The loss was attributed to an increase in option and restricted stock grants coupled with an increase in the fair market value per share, according to Limelight's S-1 filing with the SEC. The company also reported litigation expenses of $3.2 million and its involvement in a lawsuit with a competitor that has alleged patent infringement.

Underwriters for the offering are Goldman, Sachs & Co., Morgan Stanley, Jefferies Broadview, Piper Jaffray and Friedman Billings Ramsey. "

"GS Capital Partners Entities, affiliated with Goldman, Sachs & Co., is Limelight's largest shareholder, holding a 45 percent stake."

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