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Akamai to Acquire Guardicore To Extend Its Zero Trust Solutions To Help Stop Ransomware
September 2021 by Emmanuelle Lamandé
Akamai Technologies, Inc., announced it has entered into a definitive agreement to acquire Tel Aviv, Israel-based Guardicore. By adding Guardicore’s micro-segmentation solution into Akamai’s extensive Zero Trust security portfolio, Akamai will be suited to provide comprehensive protections to the enterprise, defending against threat actors and the spread of malware and ransomware.
Guardicore’s micro-segmentation solution is designed to limit user access to only those applications that are authorized to communicate with each other. By denying communication as the default, the threat surface and risk exposure are drastically reduced, thereby limiting the spread of malware and protecting the flow of enterprise data across the network. This protection extends beyond the data center to the cloud, including bare metal, virtual machines and containers.
Akamai currently offers a broad suite of innovative and leading Zero Trust security solutions, including Web Application Firewall (WAF), Zero Trust Network Access (ZTNA), Domain Name System (DNS) Firewall, and Secure Web Gateway (SWG), that help prevent attackers and malware on employee devices from gaining access to enterprise infrastructure and applications. But to be secure in today’s world, enterprises also need a second layer of defense to block the spread of malware after it has gained a foothold within the corporate infrastructure. Guardicore’s best-in-class micro-segmentation solution provides this much-needed capability, substantially mitigating the impact of breaches and the threat posed by ransomware. Their solution enables deep visibility into application flows, across data center and cloud applications, allowing businesses to more granularly understand and protect their infrastructure, from the core of the enterprise to the cloud. As a result, breaches can be detected early on so that corrective actions can be taken as quickly as possible.
Under terms of the agreement, Akamai has agreed to acquire all of the outstanding equity of Guardicore for approximately $600 million, after giving effect to expected purchase price adjustments. The closing of the transaction, which is subject to customary closing conditions, is expected to occur in the fourth quarter of 2021. For fiscal year 2022, the Guardicore acquisition is anticipated to provide about $30-35 million in revenue, and Akamai’s non-GAAP operating margin is anticipated to be in the range of approximately 29-30%. The company’s non-GAAP operating margin is expected to return to at least 30% for fiscal year 2023. On its next quarterly call currently scheduled for November 2, 2021, the company plans to provide third quarter 2021 financial results and full year 2021 financial guidance including any expected impact from Guardicore.
Morgan Stanley & Co. LLC served as financial advisor to Akamai on the transaction.
