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Akamai Technologies, Inc. (NASDAQ: AKAM) announced today that it has acquired Velocius Networks, a provider of quality of service (QoS) technology for optimizing application traffic across enterprise networks, in a cash transaction. The acquisition is expected to complement Akamai's hybrid cloud optimization strategy for optimizing IP application traffic across the Internet for remote and branch end-users.
As organizations expand globally, their employees, partners, and customers are using the Internet to access critical IP-enabled applications anywhere, anytime, and over a wide range of devices. These include, but are not limited to, core applications accessed over SSL VPN (Secure Sockets Layer Virtual Private Network), real-time interactive Web conferencing, virtualized applications and desktops, secure large file transfers and Web applications. Poor performance or spotty availability of these applications can lead to lost revenue, low adoption and high support costs. For remote and branch end users accessing multiple applications over a shared network connection, traffic prioritization and shaping becomes critical to ensuring performance regardless of network conditions.
The Velocius Networks QoS technology is expected to be integrated into Akamai's existing technology to provide traffic prioritization and shaping capabilities for IP traffic accessed over Akamai's Intelligent Platform. This plan is designed to enable Akamai to offer enterprise-class service levels for customers accessing IP applications over the Internet.
"We see this acquisition as an important investment in engineering talent and technology that is intended to complement our hybrid cloud optimization strategy," said Tom Leighton, CEO of Akamai. "We believe Velocius Networks' QoS technology will further enable us to bring enterprise class of service to IP applications accessed over the Internet – an area where we have seen increased demand from our enterprise customer base."
Velocius Networks, a privately-funded company with five employees, was established in 2011. The entire team will be integrated into Akamai's engineering group in India. The acquisition is not material to Akamai's financials.
Akamai® is the leading provider of cloud services for delivering, optimizing and securing online content and business applications. At the core of the Company’s solutions is the Akamai Intelligent Platform™ providing extensive reach, coupled with unmatched reliability, security, visibility and expertise. Akamai removes the complexities of connecting the increasingly mobile world, supporting 24/7 consumer demand, and enabling enterprises to securely leverage the cloud. To learn more about how Akamai is accelerating the pace of innovation in a hyperconnected world, please visit www.akamai.com or blogs.akamai.com, and follow @Akamai on Twitter.
Akamai Statement Under the Private Securities Litigation Reform Act
The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements about expected benefits to Akamai from the acquisition. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, inability to successfully integrate the technology of Velocius Networks or to develop products based on the technology and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.