Akamai Completes Acquisition of API Security Company Noname

Rhea-AI Summary

Akamai Technologies (NASDAQ: AKAM) has completed its acquisition of Noname Security, an API security company, for approximately $450 million.

This acquisition, initially announced on May 7, 2024, aims to enhance Akamai's capabilities in API security, addressing the growing market demand for robust API protection.

Noname Security's strong market position will help Akamai extend its protection across all API traffic locations and expand its sales and marketing resources. Additionally, Akamai will benefit from Noname's established channel and alliance relationships.

Positive

• Akamai completes acquisition of Noname Security for $450 million.
• Enhanced ability to meet growing customer demand for API security.
• Expansion of protection across all API traffic locations.
• Increased scale through Noname's sales and marketing resources.
• Benefit from Noname's established channel and alliance relationships.

Negative

• None.

Insights

Financial Analyst

The acquisition of Noname Security by Akamai Technologies for $450 million represents a strategic move aimed at reinforcing Akamai's position in the burgeoning API security market. API security is becoming increasingly critical as more businesses adopt digital transformation strategies, exposing themselves to potential vulnerabilities through API integrations.

Financially, this acquisition is significant, as it demonstrates Akamai's commitment to bolstering its security offerings. The purchase may lead to increased revenues from new security services and could potentially enhance Akamai's market share in the cybersecurity sector. Additionally, the integration of Noname's sales and marketing resources can offer immediate synergies, possibly leading to a more efficient go-to-market strategy.

However, the $450 million price tag is substantial. Investors should monitor how effectively Akamai integrates Noname's operations and whether the anticipated synergies materialize without significant disruptions. The ROI will be a key indicator of the acquisition's success in the long term.

Tech Expert

API security is increasingly critical as businesses rely more on cloud services and interconnected systems. Noname Security has been recognized as a leader in this field, offering robust solutions that can protect against API vulnerabilities. By acquiring Noname, Akamai is not only enhancing its security portfolio but also positioning itself strongly in a high-growth market segment.

From a technical perspective, this acquisition allows Akamai to extend its security capabilities across diverse API traffic locations, making their offerings more comprehensive. This is especially relevant given the rise in cyber threats targeting APIs, which can lead to significant data breaches.

The integration of Noname's technology into Akamai's existing infrastructure must be seamless to avoid service disruptions. If successful, this could set a new standard in API security, helping Akamai gain a competitive edge.

Market Research Analyst

The API security market is expanding rapidly as companies recognize the importance of securing their interconnected systems. Noname Security has been a key player in this space, providing solutions that address current and emerging security challenges. Akamai's acquisition of Noname is a strategic move to capture a larger share of this growing market.

This acquisition is not just about technology but also about expanding Akamai's market presence. Noname's established channel and alliance relationships are valuable assets that Akamai can leverage to accelerate market penetration. This could potentially lead to increased customer acquisition and retention, as well as expanded cross-selling opportunities.

For investors, this acquisition signals Akamai's proactive approach to staying ahead in the cybersecurity industry. However, it will be essential to track how well Akamai capitalizes on Noname's resources and partnerships to achieve the desired market expansion.

CAMBRIDGE, Mass., June 25, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, announces the company has completed its acquisition of application programming interface (API) security company, Noname Security. On May 7, Akamai announced an agreement between the two parties for Akamai to acquire the company in exchange for approximately $450 million.

Noname, one of the top API security vendors in the market, is expected to accelerate Akamai's ability to meet growing customer demand and market requirements as the use of APIs continues to expand. Specifically, Akamai will be able to extend protection across all API traffic locations, no matter the business, integration, or deployment requirements customers may have. Akamai also expects to gain greater scale with Noname's additional sales and marketing resources, and established channel and alliance relationships.

For more information, visit the Akamai application and API security page and the Akamai blog.

About Akamai

Akamai powers and protects life online. Leading companies worldwide choose Akamai to build, deliver, and secure their digital experiences — helping billions of people live, work, and play every day. Akamai Connected Cloud, a massively distributed edge and cloud platform, puts apps and experiences closer to users and keeps threats farther away. Learn more about Akamai's cloud computing, security, and content delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on X, formerly known as Twitter, and LinkedIn.

Contacts:

Gina Sorice
Media Relations
646-320-4107
gsorice@akamai.com

Mark Stoutenberg
Investor Relations
857-227-4491
mstouten@akamai.com   

View original content to download multimedia:https://www.prnewswire.com/news-releases/akamai-completes-acquisition-of-api-security-company-noname-302181367.html

SOURCE Akamai Technologies, Inc.

FAQ

When did Akamai complete its acquisition of Noname Security?

Akamai completed its acquisition of Noname Security on June 25, 2024.

What is the significance of Akamai acquiring Noname Security?

The acquisition allows Akamai to enhance its API security capabilities, meeting growing market demand and extending protection across all API traffic locations.

How much did Akamai pay for the acquisition of Noname Security?

Akamai paid approximately $450 million for the acquisition of Noname Security.

What benefits does Akamai expect from Noname Security's acquisition?

Akamai expects to gain increased scale with Noname's sales and marketing resources and benefit from established channel and alliance relationships.

What market demand is Akamai addressing with the acquisition of Noname Security?

Akamai is addressing the growing market demand for robust API security solutions.