Akamai To Buy Nominum; Acquisition To Be Accretive In 2019

(RTTNews) - Akamai Technologies, Inc. (AKAM) announced an agreement to acquire Nominum, a provider in DNS and enterprise security solutions for carriers. Nominum is a privately-funded company headquartered in Redwood City, CA.

Akamai expects the acquisition to be dilutive to non-GAAP earnings in the fiscal fourth quarter and 2018 due to integration costs and the impact purchase accounting has on revenue recognition. The dilutive impact in the fiscal fourth quarter of 2017 is expected to be approximately $0.05, and approximately $0.11 for fiscal 2018. Akamai expects the acquisition to be accretive in 2019. Akamai reiterated its intention to manage the company's EBITDA margins within previously stated range of mid-30s while it integrates Nominum.

Robert Blumofe, Executive Vice President, Platform & General Manager, Enterprise and Carrier Division, stated: "We believe this acquisition is a key investment in our security capabilities because Nominum will bring complementary technology, engineering, technical support and sales talent to better reach and serve our carrier partners and their enterprise customers."