Cloud-based cybersecurity company Akamai Technologies will acquire Noname Security for about $450 million to offer a complete API security suite for its customers.
Akamai plans to leverage Noname’s API security for its clients to discover better “shadow” APIs and detect vulnerabilities and attacks. The startup will integrate Noname for use by its customers shortly after the transaction is closed during the second quarter of 2024, it said in a statement.
“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,” said Oz Golan, CEO and Co-founder of Noname.
Akamai expects to scale with Noname’s additional sales and marketing resources and established channel and alliance relationships.
The company expects the acquisition of the API security startup to be dilutive to adjusted net income per share by about $0.10. It expects to be dilutive to non-GAAP operating margin by about 0.50% for FY24. During the same period, Noname is anticipated to deliver about $20 million of revenue for Akamai.
According to the statement, over 200 Noname employees, including CEO and Co-founder Oz Golan, are expected to join Akamai.
“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,” said Mani Sundaram, Executive VP and General Manager of Security Technology Group, Akamai Technologies.
In 2021, San Jose, California-based Noname Security raised $135 million in a Series C funding round led by Georgian and Lightspeed, and was valued at $1 billion.
NASDAQ-listed Akamai Technologies posted an adjusted profit of $1.69 per share on revenue of $995 million during the fourth quarter.
Edited by Suman Singh
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