Akamai to acquire Noname Security for $450M to enhance API security offerings – Business

Content delivery network and cloud services provider Akamai Technologies Inc. announced today that it had entered a definitive agreement to acquire Israeli enterprise application programming security startup Noname Security for approximately $450 million.

Rumors that a deal was in the works between the two companies first emerged in February, with a report last month suggesting that talks were in an advanced stage with a figure of $500 million possibly on the table.

Founded in 2020, the Noname Security security platform is designed to allow enterprises to see and secure managed and unmanaged application programming interfaces. Designed to “eliminate API blind spots,” the company’s platform protects enterprises from data leakage, authorization issues, abuse, misuse and data corruption.

The Noname platform includes support for discovery and analysis through remediation and testing, covering every aspect of API security. The platform creates a complete inventory of an organization’s APIs and then uses artificial intelligence and machine learning to detect attackers, suspicious behavior and misconfiguration.

For Akamai, the acquisition of Noname is said to give it greater scale through additional sales and marketing resources and established channel and alliance relationships. Noname’s tech will also allow Akamai to offer a complete API security suite to allow customers to discover shadow APIs and detect vulnerabilities and attacks.

“API development continues to proliferate as customers prioritize their investments in application modernization and digital transformation initiatives,” Oz Golan, chief executive officer and co-founder of Noname Security, said in a statement. “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.”

Coming into its acquisition, Noname Security had raised $220 million in venture capital, according to Tracxn, including a round of $135 million on a $1 billion valuation in December 2021. Investors include Georgian Partners Inc., Lightspeed Venture Partners Inc., Insight Partners LP, Cyberstarts Venture Capital Ltd., Next47 GmbH, Forgepoint Capital LLC and The Syndicate Group Inc.

The acquisition, which is subject to customary purchase price adjustments and conditions is expected to close in the second quarter of this year. Akamai also noted that the acquisition is expected to deliver approximately $20 million in additional revenue, or 10 cents per adjusted share, in its 2024 fiscal year.

Image: Noname Security