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Akamai Set to Acquire Noname; Eyes Application and API Security Marketplace for All Environments

Akamai Set to Acquire Noname; Eyes Application and API Security Marketplace for All Environments

Akamai Technologies, Inc., the cloud company that powers and protects life online, has announced its definitive agreement to acquire Noname, an application programming interface (API) security company. Noname is one of the top API security vendors in the market. It will enhance Akamai’s existing API Security solution and accelerate its ability to meet growing customer demand and market requirements as APIs expand. Akamai expects to gain greater scale with Noname’s additional sales and marketing resources and established channel and alliance relationships. With Noname’s additional sales and marketing resources, Akamai foresees increased scale.

Akamai’s Expanded API Security Suite

  • Akamai expects to offer a complete API security suite, enabling customers to discover better “shadow” APIs and detect vulnerabilities and attacks.
  • Its enhanced offering expects customers to have greater deployment choices and access to an unrivaled portfolio of technology integrations.
  • The company also plans to integrate Noname for use by customers of its Application and API platform shortly after the acquisition is closed.

Key Details of the Acquisition Agreement

Akamai has agreed to acquire all of Noname’s outstanding equity for approximately $450 million after customary purchase price adjustments. Subject to customary closing conditions, the transaction is expected to close in the second quarter of 2024.

Noname’s acquisition is anticipated to deliver approximately $20 million of revenue, dilute non-GAAP operating margin by approximately 0.50%, and dilute non-GAAP net income per diluted share by approximately $0.10 in 2024.

Akamai shared its first-quarter financial results and second-quarter and full-year 2024 financial guidance, including any expected impact from Noname in the quarterly earnings call scheduled for May 9, 2024.

Noname and its Offerings

Noname is a privately funded company headquartered in San Jose, California. Noname’s over 200 employees, including CEO and Co-founder Oz Golan, are expected to join Akamai’s Security Technology Group.

Overview of Akamai’s Past Acquisitions

Akamai has undergone acquisitions spanning various sectors, such as Enterprise Tech—US, Cybersecurity, and SaaS, totaling over $1.95B. Between January 2020 and May 2024, Akamai successfully acquired 32 companies.

Some notable acquisitions include:

#1 Concord (Sep 28, 2016)

Concord acquisition aimed to complement Akamai’s existing platform data processing capabilities and augment the Company’s product roadmap for supporting customers leveraging Internet of Things (IoT) technologies.

#2 Verivue (Nov 13, 2012)

Verivue provides licensed content delivery network (CDN) infrastructure solutions for network operators. Its acquisition was expected to help Akamai accelerate the market availability of a comprehensive portfolio of Operator CDN products.

#3 Prolexic (Dec 02, 2013)

Prolexic is the leading provider of cloud-based security solutions for protecting data centers and enterprise IP applications from distributed denial of service (DDoS) attacks. Combining the two companies’ technologies and teams creates a portfolio of security solutions designed to protect an enterprise’s Web and IP infrastructure against application-layer, network-layer and data center attacks delivered via the Internet.

#4 Cotendo (Dec 22, 2011)

With Cotendo’s acquisition, Akamai expected to increase the pace of innovation in cloud and mobile optimization.

#5 Ondat (Mar 02, 2023)

Ondat’s cloud storage technology and its industry-recognized talent were intended to strengthen Akamai’s cloud computing offerings with the acquisition.

#6 Neosec (Apr 19, 2023)

Neosec, an API detection and response platform based on data and behavioral analytics. Neosec’s API security solution complements Akamai’s market-leading application and API security portfolio by dramatically extending Akamai’s visibility into the rapidly growing API threat landscape.

#7 Linode (Feb 15, 2022)

With the acquisition of Linode, which has made it simple, affordable and accessible for developers to consume cloud computing, Akamai will become the world’s most distributed computing platform, from cloud to edge.

FAQs

1. What is the significance of Akamai’s acquisition of Noname?

Akamai’s acquisition of Noname, a leading API security company, strengthens its existing API Security solution, meeting growing customer demands and market requirements as APIs expand.

2. What is API security?

Application programming interface security refers to preventing or mitigating attacks on the programming interface. APIs are the backbone framework for mobile and web applications, and the security of the sensitive data they transfer is critical.

3. How does Akamai plan to integrate Noname’s offerings into its platform?

Akamai intends to integrate Noname’s solutions into its Application and API platform shortly after the acquisition, providing customers with enhanced security features.

4. What are the details of the acquisition agreement between Akamai and Noname?

Akamai has agreed to acquire all of Noname’s outstanding equity for approximately $450 million. Subject to customary closing conditions, the transaction is expected to close in the second quarter of 2024.

5. What are the financial implications of the acquisition for Akamai?

Noname’s acquisition is expected to generate approximately $20 million in revenue for Akamai in 2024. It may be dilutive to non-GAAP operating margin by approximately 0.50% and to non-GAAP net income per diluted share by approximately $0.10 in the same year.

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