Akamai Technologies, a cloud company that powers and protects life online, announced that it has entered into a definitive agreement to acquire application programming interface (API) security company Noname Security (see Pulse 2.0 profile here).
Noname, one of the top API security vendors in the market, will enhance Akamai’s existing API Security solution and accelerate its ability to meet growing customer demand and market requirements as the use of APIs continues to expand. Akamai also expects to gain greater scale with Noname’s additional sales and marketing resources and established channel and alliance relationships.
With the acquisition, Akamai expects to offer a complete API security suite enabling customers to better discover shadow APIs and detect vulnerabilities and attacks. And Akamai’s enhanced offering expects to have greater deployment choices for customers and access to a portfolio of technology integrations that is differentiated in the market. Plus, Akamai also plans to integrate Noname for use by customers of Akamai’s Application and API platform shortly after the acquisition is closed.
Under the agreement, Akamai agreed to acquire all of Noname’s outstanding equity for approximately $450 million after customary purchase price adjustments. The deal, which is subject to customary closing conditions, is expected to close in the second quarter of 2024.
For the fiscal year 2024, the acquisition is anticipated to deliver about $20 million of revenue, be dilutive to non-GAAP operating margin by about 0.50%, and be dilutive to non-GAAP net income per diluted share by approximately $0.10.
San Jose, California-based Noname is a privately funded company. And Noname’s over 200 employees, including CEO and Co-founder, Oz Golan, are expected to join Akamai’s Security Technology Group.
KEY QUOTES:
“Applications run our world, but as applications and users proliferate, so do security risks. Akamai has seen a growing need for API protection with our own data showing 109% year over year growth in API attacks. With the addition of Noname, Akamai believes it will have the breadth of integrations and deployment choices needed to deliver comprehensive API protection for customers across all environments.”
– Mani Sundaram, executive vice president and general manager, Security Technology Group, Akamai Technologies
“API development continues to proliferate as customers prioritize their investments in application modernization and digital transformation initiatives. Combining Noname with Akamai’s API Security offering will provide a solution for any type of customer. No matter where the customer’s applications reside – be it in the cloud, natively on the edge, on-premise, or on other vendor platforms – they will be protected.”
– Oz Golan, chief executive officer and co-founder, Noname
