Summary:

Limelight has spent the last few years acquiring pieces and tacking on new value-added services to its legacy CDN business. Adding a content management system like Clickability could make it even easier for its customers to manage and monetize digital media across their web properties.

limelight

Limelight Networks announced its latest in a series of acquisitions Monday, purchasing content management platform provider Clickability for $10 million. That price puts it below the $11 million Clickability has raised since being founded about 11 years ago. Even so, Limelight expects the CMS business to contribute $4.5 to $5 million in revenue during the second half of 2011.

Limelight has spent the last few years acquiring pieces and tacking on new value-added services to its legacy CDN business. Adding a content management system like Clickability could make it even easier for its customers to manage and monetize digital media across their web properties.

The acquisition is similar to a few other purchases that Limelight has made, according to CEO Jeff Lunsford, who we spoke with via phone. In looking at potential acquisitions, Limelight looks for quality teams that have built a good product but haven’t had great luck with sales and marketing. It then fits the technology and team in with its own architecture, and hopes to accelerate revenues by selling across its customer base.

“What you get when you buy a company like this is 60 happy customers and a team with deep domain expertise that is usually happy to be a part of something bigger than they were,” Lunsford said. The strategy has worked so far, particularly with the acquisition of video distribution platform Delve Networks. While Delve was also purchased on the cheap, under Limelight the platform has doubled its revenues.

Limelight believes Clickability can help it approach what is a $1 billion business for content management solutions, which today is mainly done in-house on homegrown systems. Extending a cloud-based solution to its existing clients is one way it might be able to garner at least some of that business.

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