Akamai Technologies Acquires Inverse Inc., Adds to Zero Trust Security Platform

Rhea-AI Summary

Akamai Technologies (NASDAQ: AKAM) announced the acquisition of Inverse, a Montreal-based company, to enhance its enterprise security offerings and expand its zero trust and secure access service edge (SASE) solutions for IoT. The all-cash deal aims to leverage Inverse's data repository and advanced algorithms to improve device visibility and security controls as the number of internet-connected devices is projected to reach 41.6 billion by 2025. The transaction is not anticipated to materially affect Akamai's financial results for 2020 and is expected to close in Q1 2021.

Positive

• Enhances Akamai's enterprise security capabilities and expands its zero trust and SASE solutions.
• Combines Inverse's data repository with Akamai's 1.3 billion daily device interactions, creating a competitive security solution.
• Addresses the growing number of IoT devices, estimated to reach 41.6 billion by 2025, improving overall security posture.

Negative

• Integration challenges may arise from merging Inverse's technology and personnel.
• Potential failure to deliver expected benefits from the combined technologies.

CAMBRIDGE, Mass., Feb. 1, 2021 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the intelligent edge platform for securing and delivering digital experiences, announces it has agreed to acquire Montreal-based Inverse. The acquisition is intended to enhance Akamai's enterprise security capabilities and expand its portfolio of zero trust and secure access service edge solutions for IoT.

Inverse provides a robust data repository and world class algorithms capable of identifying an expansive universe of IoT, mobile and other device types. These include HVAC, lighting systems, medical equipment, robotics, printers and beyond, along with a deep understanding of their expected network behaviors.

"Any number of internet-connected devices can be a jumping-off point for malware to discover and exfiltrate sensitive corporate data," said Ludovic Marcotte, president and chief executive officer, Inverse. "The Fingerbank data lake provides visibility into the device landscape - what the devices are communicating with and their typical behavior. With an anticipated 41.6 billion internet-connected devices by 2025, according to IDC, this data is essential so that enterprises can apply the correct security controls."

"Enterprises already have thousands of 'things' connecting to their networks, and that number is only expected to grow, making securing the enterprise ever more difficult. Gaining context and visibility into the device landscape, with what the devices are communicating and their typical behavior is critical," said Dr. Robert Blumofe, executive vice president, platform and general manager, enterprise division, Akamai Technologies. "By combining the Inverse device fingerprint data repository with Akamai's own security data from the 1.3 billion device interactions that take place daily across the Akamai Intelligent Edge security platform, we believe we can create an industry leading solution to apply zero trust controls and enhanced security to the full landscape of devices and workforce."

The all-cash transaction is not expected to have a material impact on Akamai's 2020 financial results nor impact its previously-stated operating margin goal for 2020. The transaction is expected to close in the first quarter 2021.

Akamai Statement Under the Private Securities Litigation Reform Act
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements about expected benefits to Akamai from the acquisition. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, financial results that impact Akamai's stated 2021 margin goals, inability to successfully integrate the technology and personnel of Inverse, failure to provide expected benefits of combined technologies, and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.

About Akamai
Akamai secures and delivers digital experiences for the world's largest companies. Akamai's intelligent edge platform surrounds everything, from the enterprise to the cloud, so customers and their businesses can be fast, smart, and secure. Top brands globally rely on Akamai to help them realize competitive advantage through agile solutions that extend the power of their multi-cloud architectures. Akamai keeps decisions, apps and experiences closer to users than anyone - and attacks and threats far away. Akamai's portfolio of edge security, web and mobile performance, enterprise access and video delivery solutions is supported by unmatched customer service, analytics and 24/7/365 monitoring. To learn why the world's top brands trust Akamai, visit www.akamai.com, blogs.akamai.com, or @Akamai on Twitter.

Media Relations

Gina Sorice
(646) 320-4107
gsorice@akamai.com

Investor Relations

Tom Barth
617-274-7130
tbarth@akamai.com

 

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SOURCE Akamai Technologies, Inc.

FAQ

What does the acquisition of Inverse mean for Akamai Technologies (AKAM)?

The acquisition will enhance Akamai's security capabilities, specifically in zero trust and IoT solutions, leveraging Inverse's data and algorithms.

How will the Inverse acquisition impact Akamai's financial results?

The transaction is not expected to materially impact Akamai's 2020 financial results or its operating margin goals for the year.

When is the acquisition of Inverse expected to close?

The acquisition is expected to close in the first quarter of 2021.

Why is Akamai acquiring Inverse?

Akamai aims to enhance its enterprise security solutions by integrating Inverse's robust data and technology for better visibility into IoT device behavior.

What are the expected benefits of Akamai's acquisition of Inverse?

The acquisition is expected to create an industry-leading solution for applying zero trust controls and improving security across a wide range of devices.