Ziff Davis announced a definitive agreement to divest its Connectivity division to Accenture for $1.2 billion in cash, prompting a roughly 60% rise in the company's stock price. The announcement confirms that the buyer will pay the stated cash consideration subject to customary closing adjustments, and that proceeds will be subject to applicable taxes.
The Connectivity division encompasses several well-known network intelligence and testing brands, including Ookla, Speedtest, Ekahau, Downdetector, and RootMetrics. Those businesses supply network intelligence, testing, and optimization solutions to service providers, enterprises, and regulators around the world.
According to Ziff Davis, Connectivity produced $231 million in revenue in 2025, which the company says represents approximately 16% of its total revenues. The company also indicated that, beginning with the first quarter of fiscal year 2026, the financial results for the Connectivity division will be reported as discontinued operations within Ziff Davis’ consolidated financial statements for both current and prior periods.
The transaction is expected to close in the coming months, subject to satisfaction of customary closing conditions and required regulatory approvals. Until the deal is completed, Ziff Davis will continue to own and operate the Connectivity assets being sold.
Ziff Davis said it intends to use the cash proceeds for general corporate purposes and to support capital allocation activities in a manner consistent with the covenants and terms of its outstanding debt securities. The sale price is open to certain adjustments at closing and the net proceeds will be subject to applicable tax treatment.
Evercore Group and Citi acted as financial advisors to Ziff Davis for the transaction, and Kirkland & Ellis served as the company's legal counsel.
This report presents the terms and financial impacts described by Ziff Davis in its announcement and the company’s statements regarding accounting treatment and intended use of proceeds. It also notes the market reaction to the announcement and the advisors and counsel involved in the deal.