Akamai Technologies, a cloud company, announced it entered into a definitive agreement to acquire application programming interface (API) security company Noname Security. Noname, an API security vendor 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, as per the company. Akamai also expects to gain greater scale with Noname’s additional sales and marketing resources and established channel and alliance relationships.
“Applications run our world, but as applications and users proliferate, so do security risks,” said Mani Sundaram, executive vice president and general manager, Security Technology Group, Akamai Technologies.
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“Akamai has seen a growing need for API protection, with our own data showing 109 per cent 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,” added Sundaram.
As a result of the acquisition, Akamai expects to offer a complete API security suite, enabling customers to better discover “shadow” APIs and detect vulnerabilities and attacks. Akamai also plans to integrate Noname for use by customers of Akamai’s application and API platform shortly after the acquisition is closed.
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Under the agreement, Akamai has agreed to acquire all outstanding equity in Noname for about $450 million, after customary purchase price adjustments. The transaction's closing, subject to customary conditions, is expected to occur in the second quarter of 2024.
In the fiscal year 2024, it is expected that the acquisition will generate about $20 million in revenue. However, it is also projected to reduce the non-GAAP operating margin by around 0.50 per cent and decrease the non-GAAP net income per diluted share by about $0.10.
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