Akamai Technologies – a cloud company that powers and protects life online – recently announced that it has acquired assets, including select enterprise customer contracts from StackPath, following StackPath’s decision to cease its content delivery network operations.
In providing the ability to utilize the world’s most distributed edge and cloud platform, Akamai will extend its standard offerings and support to customers looking for an enterprise solution to their content delivery, cybersecurity, and cloud computing needs.
By acquiring approximately 100 enterprise customer contracts, Akamai anticipates this deal will add approximately $20 million in revenue and be accretive to non-GAAP earnings per share by $0.03 – 0.05 for the full year in 2024. And Akamai anticipates no material impact on revenue and non-GAAP earnings per share for the third quarter or full year 2023.
The deal does not include the acquisition of StackPath personnel or technology. The two companies will operate under a transition services agreement for the first 90 days.
KEY QUOTE:
“We look forward to welcoming these new enterprise customers and providing them immediate access to the agility and scale of Akamai Connected Cloud to create and deliver flawless digital experiences. In migrating to Akamai Connected Cloud, StackPath’s enterprise CDN customers will also have the opportunity to tap into the full portfolio of Akamai security and cloud computing solutions to help them power and protect their businesses into the future.”
— Adam Karon, chief operating officer and general manager of Akamai’s Cloud Technology Group
