American software company Akamai announced on Tuesday its plans to acquire the Israeli company Noname Security for approximately $450 million. Earlier negotiations stalled due to differences in valuation, but now it seems that the companies have reached a mutual agreement and are close to finalizing the deal. All of Noname's employees, numbering over 200, including CEO and co-founder Oz Golan, are set to join Akamai's Security Technology Group.
To date, Noname Security has raised around $220 million, with its latest funding round in December 2021 valuing the company at $1 billion. This valuation makes the current acquisition somewhat disappointing for most of the company's investors and employees. This acquisition also builds on Akamai's previous acquisition in Israel - that of the company NeoSec.
"Applications run our world, but as the number of applications and users increases, so do the security risks," said Mani Sundaram, Executive Vice President and General Manager of Akamai's Security Technology Group. "The company has seen an escalating need for API protection, with our data showing a 109% year-over-year increase in API attacks. With the addition of Noname, we believe we can offer comprehensive API protection for customers across all environments."
"API development is expanding rapidly as our clients focus their investments on modernizing applications and pursuing digital transformation initiatives," said Oz Golan, CEO and co-founder of Noname.
"Integrating Noname with Akamai's API security offerings will provide a versatile solution for every type of customer. No matter where our clients' applications are located - whether in the cloud, at the edge, on-premises, or on other provider platforms - they will be protected."