Akamai To Acquire Israel’s Guardicore In $600 Mln Deal – Quick Facts
Akamai Technologies, Inc. (AKAM) announced Wednesday its definitive agreement to acquire Tel Aviv, Israel-based Guardicore for approximately $600 million. The deal is expected to enable the company to extend its Zero Trust Solutions to help stop ransomware.
The closing of the transaction, which is subject to customary closing conditions, is expected to occur in the fourth quarter of 2021.
Akamai expects the Guardicore acquisition to provide about $30-$35 million in revenue for fiscal year 2022, and its adjusted operating margin is anticipated to be in the range of approximately 29-30%. The company’s adjusted operating margin is expected to return to at least 30% for fiscal year 2023.
Akamai expects that by adding Guardicore’s micro-segmentation solution into its extensive Zero Trust security portfolio, Akamai will be uniquely suited to provide comprehensive protections to the enterprise, defending against threat actors and the spread of malware and ransomware.
Tom Leighton, chief executive officer and co-founder, Akamai, said, “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. 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.”
Akamai plans to provide third quarter 2021 financial results and full year 2021 financial guidance including any expected impact from Guardicore on its next quarterly call currently scheduled for November 2.
Morgan Stanley & Co. LLC served as financial advisor to Akamai on the deal.
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