Akamai spends $600 million to acquire Tel Aviv-based Guardicores

Get a free Techzine subscription!

Akamai Technologies’ acquisition of Guardicore is a move in the right direction and a great way to enhance its cybersecurity portfolio. The deal was announced on Wednesday, with terms saying that Akamai will pay about $600 million to acquire all outstanding equity.

Guardicore is a Tel Aviv-based cybersecurity company that offers enterprises a micro-segmentation solution aimed at reducing corporate networks’ attack surfaces, secure applications and ensure organizations stay compliant.

Guardicore’s software is based on zero-trust and strict permissions, with process-level rules used to strengthen secure access across public, private, and hybrid cloud environments.

Akamai’s plans for Guardicore’s micro-segmentation tech

Akamai said it will add the micro-segmentation solution to its Zero Trust security portfolio, including Zero trust Network Access (ZTNA), Web Application Firewall (WAF), Akamai’s Secure Web Gateway (SWG), and Domain Name System (DNS).

The company said that the solution is perfect in attaining deep visibility into application flows, across data centers, and cloud apps.

Businesses get a more granular understanding of their infrastructure and how to protect it, encompassing everything from the enterprise’s core to the cloud. Breaches, should they occur, can be detected early on and fixed faster. 

The deal should clear soon

The acquisition is subject to regulatory approval and should close in this year’s fourth quarter. Akamai says the purchase could generate between $30 and $35 million in revenue over the next financial year (2022).

Akamai’s non-GAAP operating margin projections hover around 29-30%, to settle on a minimum of 30% in 2023.

Tom Leighton, the CEO of Akamai, said that with the recent ransomware attacks and increasingly tighter compliance and regulations, investing in technologies requires protection from malware. Adding Guardicore’s products to Akamai’s already padded portfolio can offer security solutions that ensure these organizations and enterprises thrive.