Akamai Technologies, Inc. (NASAQ: AKAM) today announced that it had signed a definitive agreement to acquire Prolexic Technologies, Inc. for approximately $370 million, in a deal expected to close during the first half of 2014.
Akamai said the deal would extend its web optimization and security offerings by adding cloud-based security solutions for protecting data centers and enterprise applications against Distributed Denial of Service (DDoS) attacks.
“Any company doing business on the Internet faces an evolving threat landscape of attacks aimed at disrupting operations, defacing the brand, or attempting to steal sensitive data and information,” Tom Leighton, CEO of Akamai, said in a statement. “By joining forces with Prolexic, we intend to combine Akamai’s leading security and performance platform with Prolexic’s highly-regarded DDoS mitigation solutions for data center and enterprise applications protection.”
Akamai said that by acquiring Prolexic, it intends to provide customers with a comprehensive portfolio of security solutions designed to defend an enterprise’s Web and IP infrastructure against application-layer, network-layer and data center attacks.
Akamai provides solutions for defending Web sites and Web applications by using its global platform to protect against large and sophisticated DDoS and application-layer attacks. Prolexic combines DDoS mitigation solutions with security operations expertise for protecting data centers and enterprise IP applications.
Prolexic CEO Scott Hammack said that acquisition allows enterprises to rely on one provider for Internet performance and security, simplifying resolution of network availability issues and providing clear lines of accountability.
Under terms of the agreement, Akamai said it will acquire all of the outstanding equity of Prolexic in exchange for a net cash payment of approximately $370 million, after expected purchase price adjustments, plus the assumption of outstanding unvested options to purchase Prolexic stock.
The closing of the transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to occur in the first half of 2014.