Akamai announced this morning that it will acquire cloud security company Prolexic for about $370 million. The move extends Akamai's reach into the world of DDoS protection.
In a press release, Akamai CEO Tom Leighton said:
"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. 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."
The financial details:
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.
Akamai will host a conference call to discuss the acquisition of Prolexic today, December 2, 2013, at 8:45 a.m. Eastern time. The call may include forward-looking financial guidance from management. The call can be accessed through 1-800-706-7749 (or 1-617-614-3474 for international calls) using conference ID No. 19279933.
A live Webcast of the call may be accessed at www.akamai.com in the Investor section.
In addition, a replay of the call will be available for two weeks following the conference through the Akamai Website or by calling 1-888-286-8010 (or 1-617-801-6888 for international calls) and using conference ID No. 55460617.