Akamai Technologies (NASDAQ:AKAM), which brings content and applications closer to Web users, this morning announced a deal to acquire what is arguably its closest rival, privately held Speedera Networks. The all-stock transaction will require Akamai to issue roughly 12 million new shares and would be valued, using yesterday's closing price, at $130 million. The company didn't say all that much other than that it was excited about the deal, that it would close in the second quarter, and that it is expected to be accretive to earnings this year.

Apparently, that's more than enough. Akamai's shares are up more than 5% as I write this morning. And I, too, am optimistic. Though perfect numbers are unavailable, my back-of-the-napkin estimates say Speedera probably generated $27 million in revenue over the trailing 12 months. That's taken from this press release, issued in early February. The same release says Speedera did $8.28 million in sales for the second quarter ended in December, which was 20% higher than the prior quarter. That pegs its Q1 revenue at $6.9 million.

The release also goes on to say that Speedera grows at double the industry's growth rate. Akamai, the leader, has been growing by at least 20% year over year consistently. That suggests Speedera believes it can grow revenues by at least 40% year over year. Put it all together and you've got a company on track to generate $38 million in revenue for its four fiscal quarters landing in calendar 2005. Over the same period, Akamai is expected to generate at least $252 million in sales. That's a combined total of $290 million.

Of course, all of this is pure conjecture because we won't get real guidance until April, according to Akamai. Still, cash flow is likely to see a nice jump, which would help service and retire convertible debt, helping shore up the company's balance sheet for the long term. Ponder that for a moment. It wasn't more than a year ago that many in the media wondered whether Akamai could survive as a going concern. What would you call a 12-month turnaround like that? How about Rule Breaking?

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What do you think of the Speedera deal? Debate its merits with other Fools at the Akamai and Akamai Community discussion boards.

Fool contributor Tim Beyers owns shares of Akamai. You can find out what else is in his portfolio by checking Tim's Fool profile, which is here. The Motley Fool has a disclosure policy.