Ziff Davis Sells Ookla to Accenture for $1.2B

Ziff Davis Sells Connectivity Unit for $1.2 Billion

Ziff Davis has agreed to sell its Connectivity division to Accenture for $1.2 billion in an all-cash transaction. The sale includes key assets such as the popular Speedtest app Ookla, the network outage tracker Downdetector, Ekahau, and RootMetrics.

The strategic move allows Ziff Davis to concentrate on its core enthusiast websites, including IGN and Mashable, and its health division. Following the announcement, Ziff Davis shares experienced a significant surge of over 60% in early trading, while Accenture's stock price remained flat.

Financial Impact and Future Integration

The Connectivity division was a notable revenue generator, accounting for $231 million last year, or approximately 16% of Ziff Davis' total revenue. Accenture stated the acquisition will bolster its end-to-end network intelligence services, which are critical for AI-based business transformations. The transaction is expected to close in the upcoming months.

Outlook

The deal marks a clear strategic pivot for Ziff Davis toward its primary media and health properties. The company plans to use the proceeds for general corporate purposes and capital allocation activities, while Accenture gains a portfolio to enhance its network intelligence and AI service offerings.

FAQ

Q: Which companies did Ziff Davis sell to Accenture?
A: Ziff Davis sold its Connectivity division, which includes Ookla, Downdetector, Ekahau, and RootMetrics.

Q: What was the total value of the deal?
A: The all-cash transaction was valued at $1.2 billion.

Source: Investing.com