Mergers & Acquisitions

Mergers & Acquisitions

December 27, 2011

Akamai Announces Plans to Acquire Cotendo

Akamai (News - Alert) Technologies, Inc, a cloud platform that helps enterprises provide secure, high-performing user experiences on any device, anywhere, has announced its intention to acquire Cotendo, a specialist in offering integrated suite of Web and Mobile Acceleration Services from its global distributed points of presence (POPs).

Paul Sagan, president and CEO of Akamai, said that the company is looking forward to accelerating growth across the dynamic landscapes of cloud and mobile optimization by joining forces with Cotendo.

Sagan said that Cotendo's technology, partnerships and people are a strong complement to Akamai’s and together they believe there is tremendous opportunity for their combined technologies as enterprises embrace the move to the cloud and seek solutions for an increasingly mobile world.

Akamai’s move to acquire Cotendo includes the acquisition of 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 officials also said that the closing of the transaction will be subject to customary closing conditions, including regulatory approvals, is expected to occur in the first half of 2012.

"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."

Since its inception in 2008, Cotendo has been headquartered in Sunnyvale, Calif., with a technology center in Israel.  Cotendo currently has approximately 100 employees, with over 50 based in Israel.

Jyothi Shanbhag is a contributing editor for TMCnet. To read more of Jyothi's articles, please visit her columnist page.

Edited by Carrie Schmelkin

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