Akamai Technologies acquires Cotendo for $268M
Akamai Technologies (Cambridge, MA, USA) has announced that it will acquire Cotendo ( Sunnyvale, CA, USA).
Helping to mitigate the challenges of operating in a global hyperconnected world, Akamai provides a secure software platform over which businesses can engage users across the Web, mobile, cloud, or a mix of public and private network environments. Cotendo offers an integrated suite of Web and mobile acceleration services. The combination of the two companies’ technologies and teams is expected to increase the pace of innovation in the areas of cloud and mobile optimization.
Akamai® is a cloud platform for helping enterprises provide secure, high-performing user experiences on any device, anywhere. At the core of the Company’s solutions is the Akamai Intelligent Platform™ providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. Akamai removes the complexities of connecting the increasingly mobile world, supporting 24/7 consumer demand, and enabling enterprises to securely leverage the cloud.
As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimization, we are excited to be joining forces with Cotendo,” said Paul Sagan, president and CEO of Akamai. “Cotendo’s technology, partnerships and people are a strong complement to Akamai. Together, we believe there is tremendous opportunity for our combined technologies as enterprises embrace the move to the cloud and seek solutions for an increasingly mobile world.
A fast growing innovator of cloud-based acceleration technologies, Cotendo offers an integrated suite of Web and Mobile Acceleration Services from its global distributed points of presence (POPs). Cotendo’s single platform software was built from the ground-up and includes acceleration services for dynamic web applications, static and dynamic web content, SSL, Advanced DNS, Adaptive Image Compression, performance monitoring and automatic failover as well as real-time reports and analytics. Cotendo also offers a distributed cloud application environment called Cloudlet™ that allows decision-making (logic, data) at the edge, closest to the end users. Cotendo’s customer base includes international Fortune 500 enterprises, Tier 1 telecommunications providers and the world’s largest social networks, eCommerce sites, and advertising networks.
The Cotendo team is very proud of our accomplishments in delivering proven and effective solutions for accelerating Web and mobile assets. By combining our innovative technology and employees with Akamai, we expect our customers and partners will gain access to a comprehensive, global platform and wider portfolio of leading-edge services supported by some of the most experienced providers in the industry,” said Ronni Zehavi, CEO and co-founder of Cotendo. “We look forward to working with Akamai in an effort to create the strongest offering in the industry.
Founded in 2008, Cotendo is headquartered in Sunnyvale, CA, with a technology center in Israel. Cotendo currently has approximately 100 employees, with over 50 based in Israel.
Under terms of the agreement, Akamai will acquire all of the outstanding equity of Cotendo in exchange for a net cash payment of approximately $268 million, after expected purchase price adjustments, plus the assumption of outstanding unvested options to purchase Cotendo common 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 2012.