By Colin Kellaher
Ziff Davis has agreed to sell its connectivity division, anchored by its Ookla network-intelligence unit, to Accenture for $1.2 billion in cash in a deal that sent shares of the digital media and internet company soaring.
Ziff Davis on Tuesday said the division, which includes Ookla's Speedtest, Ekahau, Downdetector and RootMetrics brands, generated $231 million in revenue last year, or roughly 16% of the New York company's total revenue.
Shares of Ziff Davis were up 79% to $50.04 in midday trading Tuesday after touching a 52-week high of $50.55 earlier in the session.
The company entered Tuesday's trading sporting a market capitalization of around $1.05 billion - less than the purchase price of the connectivity division.
Ziff Davis last year said it had hired outside advisers to assist in evaluating opportunities to create shareholder value, including the potential sale of entire divisions.
The sale of the connectivity division "is a transformative deal for Ziff Davis, representing a significant realization of value for our shareholders and a concrete illustration of the quality of the businesses in our portfolio," Chief Executive Vivek Shah said in a statement.
Ziff Davis said it plans to use proceeds from the sale, slated to close in the coming months, for general corporate purposes and to fund its capital-allocation activities.
Accenture for its part said the addition of Ookla and its related brands will help the Dublin-based IT consulting giant offer end-to-end network intelligence services essential for AI-based transformations.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
03-03-26 1233ET
