Cloud services company, Akamai, has confirmed it will purchase all outstanding equity of Prolexic for a net cash payment of about $370 million after expected purchase price adjustments, plus the assumption of outstanding unvested options to purchase stock.
Prolexis is a provider of Cloud-based security solutions designed to protect datacentres and enterprise IP applications from distributed denial of services (DDoS) attacks.
The acquisition intends to provide Akamai customers with a comprehensive portfolio of security solutions which promise to defend an enterprise’s Web and IP infrastructure against application-layer, network-layer, and datacentre attacks.
“By joining forces with Prolexis, we intend to combine Akamai’s security and performance platform with Prolexic’s DDoS mitigation solutions for datacentre and enterprise applications protection,” Akamai chief executive officer (CEO), Tom Leighton, said.
According to Prolexic CEO, Scott Hammack, “Being able to rely on one provider for Internet performance and security greatly simplifies resolution of network availability issues and offers clients clear lines of accountability.”
The closing of the transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to occur in the first half of 2014. Therefore Akamai’s 2013 fourth quarter existing guidance remains unchanged.
The Prolexic acquisition is expected to be slightly dilutive to Akamai’s non-GAAP net income per share in the first full year post closure in the range of $0.06 to $0.08. Once the acquisition closes, Akamai will include Prolexic in its guidance moving forward.