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Akamai confirms acquisition of Noname for $450 million

A few weeks ago, TechCrunch announced the news that Akamai was in talks to buy API security specialist Noname Security for about $500 million. Today, the deal was confirmed, but at a slightly lower price. Akamai on Tuesday said he agreed to the purchase Noname in a $450 million deal.

The deal underscores continued pressure for greater consolidation in the cybersecurity market. Various cybersecurity startups have emerged over the past few years. But many of these companies have found it difficult to expand, raise money or sell to clients looking for a one-stop shop to manage multiple security needs, so the bigger players are opting for the smaller and more promising ones.

Sometimes it’s at a deep discount. Noname was estimated at one billion dollars in its last private fundraising in December 2021, so it’s selling for less than half that price.

But this is not even the worst discount: Wiz was in advanced discussions to buy Lacework Security for $168 million, down slightly from the smaller company’s previous valuation of $8.3 billion. That deal, however, failed due diligence.

Akamai said it will integrate Noname into its API Security business and expects the acquisition to generate approximately $20 million in revenue in fiscal 2024.

«Applications rule our world, but as applications and users proliferate, so do security risks,» Mani Sundaram, EVP and general manager, Security Technology Group, Akamai Technologies, said in a statement. “Akamai has recognized the growing need for API protection with our own data showing a 109% annual increase in API attacks. With the addition of Noname, Akamai believes it will have the breadth of integrations and deployment capabilities needed to deliver end-to-end API protection for users in all environments.”

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Akamai’s focus, the company said, is on giving developers and security operations teams more tools to detect shadow APIs as well as other vulnerabilities.

The contract is expected to be concluded in the second quarter of 2024.

«API development continues to expand as clients prioritize their investments in application modernization and digital transformation initiatives,» said Oz Golan, CEO and co-founder of Noname, in a statement. “Combining Noname with Akamai’s API security offering will provide a solution for any type of customer. Regardless of where the customer’s applications reside — whether in the cloud, natively at the edge, on-premise or on third-party platforms — they will be protected.”

Golan and the rest of the San Jose company’s 200 employees are expected to join Akamai as part of the deal.

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