Akamai Technologies To Buy API Security Firm Neosec; Terms Not Disclosed

(RTTNews) - Akamai Technologies, Inc. (AKAM), a cloud company, announced Wednesday that it has entered into a definitive agreement to acquire privately funded Neosec, an API detection and response platform based on data and behavioral analytics. The financial terms of the deal were not disclosed.

The acquisition is expected to close in the second quarter of 2023. For fiscal year 2023, the acquisition is anticipated to be slightly dilutive to adjusted earnings per share by around $0.04 to $0.06 and is not expected to add any material revenue.

Neosec is headquartered in Palo Alto, California and Tel Aviv, Israel. Following the acquisition, Neosec's employees, including co-founder and CEO, Giora Engel, and co-founder and chief technology officer, Ziv Sivan, are expected to join Akamai's Security Technology business.

Akamai said Neosec's API security solution will complement its application and API security portfolio.

Mani Sundaram, executive vice president and general manager, Security Technology Group, Akamai Technologies, said, "Neosec's platform and Akamai's application security portfolio will allow customers to gain visibility into all APIs, analyze their behavior and protect against API attacks."

Akamai plans to provide first quarter financial results and full year 2023 financial guidance including any expected impact from Neosec on its next quarterly earnings call scheduled for May 9.