Cloud computing company Akamai Technologies to buy API security company Noname

US-based cloud computing company Akamai Technologies recently entered into a definitive agreement to acquire application programming interface (API) security company Noname Security. 

Akami believes that Noname will enhance its existing API Security solution and accelerate its ability to meet growing customer demand and market requirements as the use of APIs continues to expand.

The company also expects to gain greater scale with Noname’s additional sales and marketing resources and established channel and alliance relationships.

Akamai highlights the growing need for API protection

“Applications run our world, but as applications and users proliferate, so do security risks,” said Mani Sundaram, executive vice president and general manager of Akamai Technologies' Security Technology Group. 

“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.”

“API development continues to proliferate as customers prioritize their investments in application modernization and digital transformation initiatives,” said Oz Golan, chief executive officer and co-founder of Noname.

“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.”

At what value?

Akamai has agreed to acquire all of Noname's outstanding equity for approximately $450 million after customary purchase price adjustments. The transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2024.

Financial benefits

Akamai said that for the fiscal year 2024, the acquisition is anticipated to deliver approximately $20 million of revenue, dilute non-GAAP operating margin by approximately 0.50%, and dilute non-GAAP net income per diluted share by approximately $0.10.

On its upcoming quarterly earnings call scheduled for May 9, 2024, Akamai plans to provide first-quarter financial results and second-quarter and full-year 2024 financial guidance, including any expected impact from Noname.