Akamai Acquires Prolexic for $370 Million
Under terms of the agreement, Akamai will acquire the outstanding equity of Prolexic in exchange for a cash payment of approximately $370 million.Cloud services provider Akamai announced its intent to acquire Prolexic Technologies, a provider of cloud-based security solutions for protecting data centers and enterprise IP applications from distributed denial-of-service (DDoS) attacks. Under terms of the agreement, Akamai 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, a joint company statement said. Prolexic combines DDoS mitigation solutions with security operations expertise for protecting data centers and enterprise IP applications, while Akamai provides solutions for defending Websites and Web applications by leveraging the scale and intelligence of its global platform to protect against DDoS and application-layer 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. We believe that Prolexic's solutions and team will help us achieve our goal of making the Internet fast, reliable, and secure."