Akamai Technologies, a leading cloud computing company based in the US, has recently announced its plans to acquire Noname Security, an API security company, in a definitive agreement. The acquisition is valued at approximately $450 million, subject to customary purchase price adjustments, and is expected to be completed in the second quarter of 2024 pending regulatory approvals.
The strategic move by Akamai to acquire Noname reflects the growing importance of API security in today's digital landscape. With the proliferation of applications and APIs, ensuring robust security measures has become paramount.
Mani Sundaram, Executive Vice President and General Manager of Akamai Technologies' Security Technology Group, emphasized the increasing need for API protection, citing a 109% year-over-year growth in API attacks based on Akamai's data. The acquisition of Noname is seen as a strategic step to bolster Akamai's API Security solution and meet the rising demand for comprehensive API protection.
Oz Golan, Chief Executive Officer and Co-founder of Noname, expressed optimism about the integration, highlighting that combining Noname's expertise with Akamai's API Security offering will provide a versatile solution catering to diverse customer environments, including cloud, edge, on-premise, and other platforms.
From a financial perspective, Akamai anticipates the acquisition to contribute approximately $20 million in revenue for the fiscal year 2024. However, there will be a slight dilution in non-GAAP operating margin and non-GAAP net income per diluted share.
The acquisition of Noname aligns with Akamai's strategic vision to strengthen its security portfolio and address evolving cybersecurity challenges in the digital era.
This acquisition news comes amid a dynamic landscape where companies are increasingly investing in cybersecurity measures to safeguard their digital assets and infrastructure against sophisticated threats and attacks.
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