Akamai Technologies, Inc. announced that it has entered into a definitive agreement to acquire application programming interface (API) security company, Noname Security.
Noname, one of the top API security vendors in the market, will enhance Akamai’s existing API Security solution and accelerate its ability to meet growing customer demand and market requirements as the use of APIs continues to expand. Akamai also expects to gain greater scale with Noname’s additional sales and marketing resources, and established channel and alliance relationships.
“Applications run our world, but as applications and users proliferate, so do security risks,” said Mani Sundaram, executive vice president and general manager, Security Technology Group, Akamai Technologies. “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.”
As a result of the acquisition, Akamai expects to offer a complete API security suite enabling customers to better discover “shadow” APIs and detect vulnerabilities and attacks. Akamai’s enhanced offering expects to have greater deployment choices for customers and access to a portfolio of technology integrations that is unrivaled in the market. Akamai also plans to integrate Noname for use by customers of Akamai’s Application and API platform shortly after the acquisition is closed.
“API development continues to proliferate as customers prioritise their investments in application modernisation and digital transformation initiatives,” said Oz Golan, chief executive officer and co-founder, 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.”
Under terms of the agreement, Akamai has agreed to acquire all of the outstanding equity of Noname for approximately $450 million, after customary purchase price adjustments. The closing of the transaction, which is subject to customary closing conditions, is expected to occur in the second quarter of 2024.
For the fiscal year 2024, the acquisition is anticipated to deliver approximately $20 million of revenue, be dilutive to non-GAAP operating margin by approximately 0.50%, and be dilutive to 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.
Noname, headquartered in San Jose, California, is a privately funded company. Noname’s over 200 employees, including CEO and Co-founder, Oz Golan, are expected to join Akamai’s Security Technology Group.