Akamai Technologies Inc - AKAM STOCK NEWS

Akamai Technologies (NASDAQ: AKAM) has completed its acquisition of select assets from Edgio, following approval from the U.S. Bankruptcy Court for the District of Delaware on Nov. 26, 2024. The acquisition includes specific customer contracts in content delivery and security, along with non-exclusive patent license rights from Edgio's portfolio. The deal excludes Edgio's personnel, technology, and network assets. This strategic move enables Akamai to provide several hundred new customers with a migration path to its services before Edgio's content delivery network ceases operations. These customers will also gain access to Akamai's comprehensive security and cloud solutions.

Akamai Technologies released a new study demonstrating the significant economic impact of their Guardicore Segmentation solution. The study, conducted by Forrester Consulting, revealed a 152% return on investment with a total benefit of US$9.6 million over three years for a composite organization.

Key findings include: US$4.1 million recouped over three years through reduced attack surface, 70% reduction in incident management effort by year 3, and 33% fewer cybersecurity professionals needed, saving nearly US$1.4 million. The solution also saved over US$2.9 million by reducing legacy systems.

The study was based on interviews with five representatives using Akamai Guardicore Segmentation, focusing on a composite global organization with US$1 billion annual revenue and 5,000 employees across 10 global locations.

Akamai Technologies (NASDAQ: AKAM) has received U.S. Bankruptcy Court approval to acquire select assets from Edgio, including customer contracts in content delivery and security, and non-exclusive patent license rights. The transaction, following Edgio's Chapter 11 bankruptcy auction, excludes personnel, technology, and network assets. The deal is expected to add $9-$11 million in revenue for Q4 2024 and $80-$100 million for 2025. Akamai will incur transition costs of $15-$17 million in Q4 2024 and $25-$30 million in 2025. The transaction is anticipated to close in early December 2024.

Akamai Technologies (NASDAQ: AKAM) announced the extension of its Guardicore Segmentation solution to support agentless enforcement for cloud native resources in AWS, along with new features for its Zero Trust Network Access product. The company highlighted that 32% of cybersecurity breaches involved ransomware or extortion, emphasizing the need for comprehensive Zero Trust frameworks.

The enhanced Guardicore Segmentation offers cloud native visibility, hybrid enforcement, and integrated reputation analysis. The Enterprise Application Access updates include edge transport capabilities and local point of presence (PoP), promising two to three times faster file downloads and improved application performance for in-office users.

Akamai (NASDAQ: AKAM) has emerged as the winning bidder to acquire select assets from Edgio, following Edgio's Chapter 11 bankruptcy filing on September 9, 2024. The acquisition includes customer contracts from Edgio's security and content delivery businesses, along with non-exclusive license rights to Edgio's patent portfolio, but excludes Edgio's network assets. The 363 sale auction concluded on November 13, 2024, with court approval hearing scheduled for November 25, 2024. If approved, the transaction is expected to close in Q4 2024, subject to customary conditions. Financial impact details will be provided post-court approval.

Akamai Technologies (NASDAQ: AKAM) announced that Avesha Technologies has joined the Akamai Qualified Compute Partner Program as an Independent Software Vendor. Avesha is providing two Kubernetes solutions: KubeSlice for multi-cloud connectivity and Smart Scaler for autoscaling. The solutions enable seamless cloud migration, optimize resource allocation, and provide cost management through KubeTally. G&L Systemhaus, a German systems integrator, highlighted the benefits of using KubeSlice for connecting microservices across different environments. The partnership aims to provide secure and high-performance Kubernetes solutions scalable across Akamai Connected Cloud.

Akamai Technologies released its third annual API Security Impact Study, revealing concerning trends in API security. 84% of respondents experienced API security incidents in the past year, up from 78% in 2023. The study, surveying 1,207 security leaders across the US, UK, and Germany, found that only 27% of participants have a full API inventory and know which APIs exchange sensitive data, down from 40% in 2023.

The average cost to remediate API incidents was $591,404 in the US, rising to $832,801 in financial services. Energy/utilities reported the highest incident rate (91%), while retail/ecommerce had the lowest (68%). CISOs ranked addressing generative AI threats (25.5%) and securing APIs (24.8%) as top priorities.

Akamai Technologies (NASDAQ: AKAM) has launched the Akamai App Platform, a cloud-agnostic solution built on Kubernetes technology from their recently acquired Otomi. The platform offers ready-to-run templates that simplify deployment, management, and scaling of Kubernetes clusters, reducing deployment time from months to under an hour. The solution provides essential capabilities including customizable templates, a self-service environment, and a framework integrating preconfigured open source projects. Key features include simplified operational complexity, standardized deployments, true workload portability, and integrated security and observability features.

Akamai Technologies (NASDAQ: AKAM) reported Q3 2024 revenue of $1.005 billion, up 4% year-over-year, marking its first billion-dollar quarter. Security revenue grew 14% to $519 million, while Compute revenue increased 28% to $167 million. However, Delivery revenue declined 16% to $319 million. The company recorded a $82 million restructuring charge related to workforce reduction, resulting in GAAP net income of $58 million (down 64%) and EPS of $0.38 (down 63%). Security and compute solutions now represent 68% of total revenue, growing 17% year-over-year. The company maintains strong cash position with $1.979 billion in cash and equivalents.