Akamai Technologies has purchased Guardicore to expand its cybersecurity portfolio for content delivery networks (CDNs).
The agreement was made public on Wednesday. Akamai will pay about $600 million to purchase all outstanding shares under the terms of the transaction.
Based in Tel Aviv, Israel Guardicore is a cybersecurity firm that provides a micro-segmentation solution to the corporation in order to limit the possible attack surface of corporate networks, secure applications and meet regulatory standards.
The company’s software is built on a zero-trust and rigorous permissions architecture, with process-level controls in place to improve security across public, private, and hybrid cloud environments.
According to Akamai, the micro-segmentation solution will be added to the company’s Zero Trust security portfolio, which already includes the Web Application Firewall (WAF), Zero Trust Network Access (ZTNA), Domain Name System (DNS) Firewall, and Akamai’s Secure Web Gateway (SWG).
“Their technology provides deep visibility into application flows across the data center and cloud applications, allowing businesses to more granularly analyze and safeguard their infrastructure from the core of the enterprise to the cloud,” Akamai claims. “As a result, breaches can be recognized early on, allowing corrective steps to be implemented as soon as possible.”
The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of 2021. According to Akamai, the acquisition could yield between $30 and $35 million in revenue over FY2022, with Akamai’s non-GAAP operating margin expected to be in the 29-30 percent range, reverting to a minimum of 30 percent in 2023.
“Given the recent spike in ransomware assaults and increasingly severe compliance laws, investing in solutions to minimize malware transmission has become mission-critical,” said Akamai CEO Tom Leighton. “We believe that by combining Guardicore’s outstanding micro-segmentation technology with Akamai’s entire portfolio of zero trust solutions, Akamai will be able to deliver the most effective strategy to tackle ransomware on the market today.”
Guardicore CEO Pavel Gurvich stated that the company “looks forward to working with Akamai to secure the user and the organization – regardless of what the user is doing or where end-users and workloads are located.”