Akamai Technologies Acquires Customers and Select Intellectual Property from Instart
Non-dilutive transaction expected to accelerate development of Page Integrity solution and provide access to new sales opportunities
Akamai Technologies, Inc. (NASDAQ: AKAM), the intelligent edge platform for securing and delivering digital experiences, announces it has closed an asset purchase transaction with Palo Alto, California-based Instart to acquire customer contracts and intellectual property (IP). Akamai intends to expeditiously transition the acquired customers to Akamai’s platform. The acquired IP is expected to benefit the development of Akamai’s page integrity solution.
"Akamai identified a unique opportunity to acquire high value customers and migrate them to our platform with minimal cost to us and disruption to the customer," said Rick McConnell, president of Akamai and general manager of its web division. "Along with gaining customers, we are able to augment our efforts in page integrity, an area of immediate security concern for our customers."
New customers are expected to be rapidly migrated to the Akamai Intelligent Edge platform. The acquisition is immaterial to the company’s financial results and is not anticipated to negatively affect the company’s operating margin target.
Akamai powers and protects life online. Leading companies worldwide choose Akamai to build, deliver, and secure their digital experiences — helping billions of people live, work, and play every day. With the world’s most distributed compute platform — from cloud to edge — we make it easy for customers to develop and run applications, while we keep experiences closer to users and threats farther away. Learn more about Akamai’s security, compute, and delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on Twitter and LinkedIn.
Akamai Statement Under the Private Securities Litigation Reform Act
This 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. 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, failure of the IoT market to develop as expected, changes to Akamai’s investment strategy, inability of the newly-introduced solution to operate as expected, provide the potential benefits described or address intended market needs, a failure of Akamai's network infrastructure, and other factors that are discussed in Akamai’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.