Strategic investment in CDNetworks Co., Ltd.
- Enhancing Global Internet Business and achieving network efficiency through entry into CDN Business -

October 12, 2011

KDDI agreed with the shareholders of CDNetworks Co., Ltd. (Headquarters: Seoul, CEO: Samuyeol Ko, "CDNetworks"), a global Contents Delivery Network (CDN) service [1] provider, on strategic investment in the company.
Based on this agreement, KDDI will purchase 85.5% of common shares in CDNetworks for approximatelyUSD167 million (approximately JPY 12.8 billion) [2] in October 2011 and KDDI will embrace CDNetworks as one of KDDI family.

CDN services realize acceleration of Internet communication by temporary cache and delivery of contents in servers which are located closer to the end users. The services are now essential for Internet providers to offer their users stress-free and comfortable services and contents. CDNetworks operates its CDN business in 70 cities in 31 countries [3], focusing on Korea, Japan, China, the United States and Europe. CDNetworks is highly competitive in Asia, which is a rapid growing field of the Internet related business.

KDDI will add new value, combining high-quality Internet network and CDN services, to various Internet service providers including contents providers through the strategic investment in CDNetworks. In addition, KDDI will realize offload of further increasing mobile traffic and build up the network environment suitable for the smartphone era by adding CDN services in KDDI’s mobile platform.

  • [1] See separate sheet for the overview of CDNetworks’ business
  • [2] USD 1 = JPY 76.88 (as of October 11, 2011)
  • [3] As of May 2011
  • * The information contained in the news releases is current at the time of publication.
    Products, service fees, service content and specifications, contact information, and other details are subject to change without notice.

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