March 3 (Reuters) - Ziff Davis said on Tuesday it has agreed to sell its Connectivity division — the unit behind brands such as Ookla, Speedtest and Downdetector — to Accenture for $1.2 billion in
Ziff Davis to sell Ookla and Downdetector to Accenture as part of $1.2 billion deal (March 3)
Overview of the Ziff Davis Connectivity Division Sale
(Removes reference to iBuyNewCar in paragraph 2 and Policygenius insurance brokerage sale in paragraph 4 of March 3 story; Corrects year of RootMetrics deal to 2021 from 2016 and removes value of Ookla deal in paragraph 6)
Details of the Sale Agreement
March 3 (Reuters) - 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.
Additional Assets Included in the Deal
The sale, which also includes Ekahau and RootMetrics, will allow Ziff Davis to focus on enthusiast websites like IGN and Mashable, as well as Everyday Health.
Market Reaction
Shares of Ziff Davis rose more than 60% in early trading, while Accenture was flat.
Background and Strategic Rationale
Streamlining Under CEO Vivek Shah
The sale builds on a streamlining push under CEO Vivek Shah since 2017 through moves like the 2021 Consensus Cloud spin-off.
Use of Proceeds
Proceeds from the transaction are expected to be used for general corporate purposes and capital allocation activities, in line with the firm's debt agreements, Ziff Davis said.
History and Performance of the Connectivity Division
Acquisition Timeline
Connectivity traces its roots to bolt-on acquisitions such as Ookla in 2014 and RootMetrics in 2021. The unit capitalized on the global 5G rollout and pandemic-driven surge in bandwidth demand, generating $231 million in revenue last year, or about 16% of Ziff Davis' total.
Strategic Value for Accenture
Network Intelligence Services
"With the Ookla portfolio, we will offer end-to-end network intelligence services essential for AI-based transformation," said Manish Sharma, chief strategy and services officer, Accenture.
Next Steps and Advisors
Transaction Timeline
The sale eyes closure in coming months, during which Ziff Davis will continue to operate the unit.
Advisors on the Deal
Evercore and Citi advised Ziff Davis on the transaction, with Kirkland & Ellis handling legal matters.
Reporting Credits
(Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore)
