Akamai acquires cybersecurity firm Guardicore for $600 million

September 29, 2021 TH Author

Akamai Technologies has acquired Guardicore to enhance the content delivery network (CDN’s) cybersecurity portfolio.

The deal was announced on Wednesday. Under the terms of the agreement, Akamai will pay roughly $600 million to acquire all outstanding equity.

Tel Aviv, Israel-based Guardicore is a cybersecurity company that offers the enterprise a micro-segmentation solution to reduce the potential attack surface of corporate networks, secure applications, and to meet compliance standards.

The firm’s software is based on zero-trust and strict permissions architecture, with process-level rules implemented to bolster secure access across public, private, and hybrid cloud environments.

Akamai says the micro-segmentation solution will be added to the company’s Zero Trust security portfolio, including Web Application Firewall (WAF), Zero Trust Network Access (ZTNA), Domain Name System (DNS) Firewall, and Akamai’s Secure Web Gateway (SWG).

“Their solution enables deep visibility into application flows, across data center and cloud applications, allowing businesses to more granularly understand and protect their infrastructure, from the core of the enterprise to the cloud,” Akamai says. “As a result, breaches can be detected early on so that corrective actions can be taken as quickly as possible.”

The acquisition, subject to regulatory approval, is expected to close in Q4 2021. Akamai says that the purchase may generate between $30 and $35 million in revenue over FY2022, with Akamai’s non-GAAP operating margin anticipated to be in the range of 29-30%, returning to a minimum of 30% in 2023.

“Given the recent surge in ransomware attacks and increasingly stringent compliance regulations, investing in technologies to reduce the spread of malware has become mission-critical,” commented Tom Leighton, CEO of Akamai. “By adding Guardicore’s leading micro-segmentation products to Akamai’s comprehensive portfolio of zero trust solutions, we believe Akamai will be able to provide the most effective way to combat ransomware on the market today.”

Guardicore CEO Pavel Gurvich said the team “greatly look forward to joining Akamai to protect the user and the enterprise — no matter what the user is doing or where end-users and workloads are located.”

Morgan Stanley & Co. served as Akamai’s financial advisor.

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