Ziff Davis (NASDAQ:ZD) stock gained by 60% after the company revealed its decision to sell its Connectivity division to Accenture for $1.2 billion in cash. This bold move signals a strategic shift as Ziff Davis sharpens its focus on core business areas.

Accenture Acquires Connectivity Division

Ziff Davis struck a deal to sell its Connectivity division, which includes prominent brands like Ookla, Speedtest, Ekahau, Downdetector, and RootMetrics. These brands are known for delivering network intelligence, testing, and optimization solutions to service providers, enterprises, and regulators worldwide.

The $1.2 billion price tag, while subject to closing adjustments, reflects the division’s value. The transaction is expected to close in the coming months, pending regulatory approvals and other conditions. Until then, Ziff Davis will continue managing the division’s operations.

Connectivity’s Financial Contribution

In 2025, the Connectivity division brought in $231 million in revenue, accounting for 16% of Ziff Davis’ total earnings. As part of the transition, Ziff Davis will reclassify the division’s financial results as discontinued operations in its consolidated financial statements, starting with the first quarter of fiscal year 2026.

How Ziff Davis Plans to Use the Proceeds

Ziff Davis plans to reinvest the $1.2 billion proceeds into general corporate initiatives and capital allocation activities. This approach aligns with the company’s outstanding debt securities and positions Ziff Davis to strengthen its financial foundation while pursuing future growth opportunities.

Key Players in the Deal

To ensure a smooth transaction, Ziff Davis enlisted Evercore Group and Citi as financial advisors. Kirkland & Ellis provided legal counsel, guiding the company through the process.

A Strategic Move for Growth

By selling its Connectivity division, Ziff Davis is taking a decisive step to streamline its operations and focus on its long-term goals. This deal not only unlocks significant capital but also sets the stage for the company to explore new opportunities and drive sustainable growth.

For more investor relations information about Ziff Davis please visit www.investor.ziffdavis.com .