December 22, 2011

Akamai to Acquire Cloud-Based Tech Company for $268 Million

Akamai Technologies and Cotendo have signed a definitive agreement for Akamai to purchase Cotendo. The combination of the two companies' technologies and teams is expected to increase the pace of innovation in the areas of cloud and mobile optimization. Akamai provides a secure platform over which businesses can engage users across the Web, mobile, cloud, or a mix of public and private network environments.  Cotendo offers an integrated suite of Web and mobile acceleration services.

Founded in 2008, Cotendo is headquartered in Sunnyvale, Calif., with a technology center in Israel.  Cotendo currently has approximately 100 employees, with over 50 based in Israel. Under the terms of the agreement, Akamai will acquire all of the outstanding equity of Cotendo in exchange for a net cash payment of approximately $268 million, after expected purchase price adjustments, plus the assumption of outstanding unvested options to purchase Cotendo common stock. The closing of the transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to occur in the first half of 2012.

Contendo is an innovator of cloud-based acceleration technologies, offering an integrated suite of Web and Mobile Acceleration Services from its global distributed points of presence (POPs). Cotendo's single platform software was built from the ground-up and includes acceleration services for dynamic web applications, static and dynamic web content, SSL, Advanced DNS, Adaptive Image Compression, performance monitoring and automatic failover as well as real-time reports and analytics. Cotendo also offers a distributed cloud application environment called Cloudlet that allows decision-making (logic, data) at the edge, closest to the end users.  Cotendo's customer base includes Fortune 500 enterprises, Tier 1 telecommunications providers and social networks, eCommerce sites and advertising networks.