Akamai Technologies, Inc. (NASDAQ:AKAM) is set to acquire cloud-based security provider Prolexic Technologies Inc for about $370 million.
Akamai Technologies, Inc. (NASDAQ:AKAM) announced its big acquisition of U.S.-based provider of cloud-based security solutions Prolexic Inc. and the deal is expected to close in the first half of 2014.
Akamai assists enterprise clients from cyberattacks
Akamai specializes in optimizing web site performance and content distribution, while Prolexic specializes in offering solutions to protect data centers and enterprise IP applications from Distributed Denial of Service (DDos) attacks.
The Cambridge, Massachusetts-based Akamai Technologies, Inc. (NASDAQ:AKAM) will be adding Prolexic’s services for defending Web sites and Web applications. Akamai said it hopes to use the acquisition to provide a portfolio of security services designed to defend a business’ Web and IP infrastructure against application-layer, network-layer and data center attacks delivered via the Internet.
Akamai’s CEO Tom Leighton expressed confidence that Prolexic’s solutions and team will help Akamai achieve its goal of making the Internet fast, reliable and secure. He indicated any company doing business on the Internet faces an evolving threat landscape of attacks aimed at disrupting operations, defacing the brand, or attempting to steal sensitive data and information.
According to Ingrid Lunden of Techcrunch, Akamai intends to have an end-to-end solution that will cover not just distribution and security, but security across the range of cloud-based or network-dependent services that a business might run over an IP network.
In August 2012, Akamai told investors that to help increase profits, the company would be making more acquisitions in security and network companies.
Last month, Akamai Technologies, Inc. (NASDAQ:AKAM) acquired Velocius Networks in an all-cash deal for an undisclosed sum. Velocius would help round out the firm’s hybrid cloud optimization unit. The firm will be integrated into Akamai’s engineering team in India.
According to Bex Fox Rubin of The Wall Street Journal, the proposed acquisition is expected to be slightly dilutive to Akamai Technologies, Inc. (NASDAQ:AKAM)’s adjusted per-share income in the first full year after the deal is completed in the range of six cents to eight cents.