Akamai Technologies Acquires Noname Security for $450 Million to Enhance API Protection
Noname Security is recognized as one of the top API security vendors, bringing a wealth of expertise and technology to the table.
Akamai Technologies, Inc. (NASDAQ: AKAM), a leading cloud services provider, has revealed its latest strategic move in the realm of cybersecurity. The company has entered into a definitive agreement to acquire Noname Security, a prominent player in the field of application programming interface (API) security. This acquisition marks a significant step forward for Akamai as it seeks to fortify its existing API Security solution and address the escalating demand for robust API protection.
Noname Security is recognized as one of the top API security vendors, bringing a wealth of expertise and technology to the table. By integrating Noname's capabilities into its portfolio, Akamai aims to bolster its defenses against the growing array of threats targeting APIs. With the proliferation of applications and users, the importance of API security cannot be overstated, and Akamai is poised to meet this challenge head-on.
Mani Sundaram, Executive Vice President and General Manager of Akamai's Security Technology Group, underscored the critical role of API protection in today's digital landscape. He noted a significant uptick in API attacks, a trend that underscores the urgency of enhancing security measures. Through the acquisition of Noname, Akamai anticipates offering a comprehensive API security suite that empowers customers to identify vulnerabilities, detect attacks, and safeguard their digital assets effectively.
The strategic rationale behind the acquisition extends beyond mere technological integration. Akamai stands to benefit from Noname's extensive sales and marketing resources, as well as its established channel and alliance relationships. This infusion of talent and expertise is expected to enhance Akamai's market reach and accelerate its growth trajectory in the API security domain.
Oz Golan, CEO and Co-founder of Noname, emphasized the complementary nature of the two companies' offerings. He highlighted the increasing emphasis on API development amidst ongoing initiatives for application modernization and digital transformation. By joining forces with Akamai, Noname envisions delivering a comprehensive solution that caters to diverse customer needs, irrespective of their application environments.
The financial terms of the acquisition reflect Akamai's commitment to strategic investment in cybersecurity. The company has agreed to acquire all outstanding equity of Noname for approximately $450 million, underscoring the significance of this strategic partnership. While the transaction is subject to customary closing conditions, it is expected to be finalized in the second quarter of 2024.
Looking ahead, Akamai anticipates significant revenue contributions from Noname in fiscal year 2024, further bolstering its financial outlook. Despite the anticipated dilution to non-GAAP operating margin and net income per diluted share, Akamai remains optimistic about the long-term benefits of this acquisition.
