Akamai Technologies announced on Monday that it has signed a definitive agreement to acquire Prolexic, a DDoS security provider.
Under the agreement, Akamai will acquire all of the outstanding equity of Prolexic in exchange for a net cash payment of approximately $370 million. The deal is expected to close in the first half of 2014.
With the acquisition of Prolexic, Akamai will provide customers with a full portfolio of security solutions to protect enterprise IP applications across a data center. The full suite of solutions will offer customers protection from application-layer, network-layer and data center attacks, the companies said.
The acquisition news comes a few months after Prolexic secured $30 million in funding to expand its DDoS protection centers.
As the size and scope of DDoS attacks continues to grow, investment in the security space has gained traction. Recently, Prolexic-competitor Black Lotus raised $3.5 million in funding to grow its footprint in the information security sector through strategic acquisitions and expansion of its DDoS defense network into new markets.
“Any company doing business on the Internet faces an evolving threat landscape of attacks aimed at disrupting operations, defacing the brand, or attempting to steal sensitive data and information,” Tom Leighton, CEO of Akamai said. “By joining forces with Prolexic, we intend to combine Akamai’s leading security and performance platform with Prolexic’s highly-regarded DDoS mitigation solutions for data center and enterprise applications protection. We believe that Prolexic’s solutions and team will help us achieve our goal of making the Internet fast, reliable, and secure.”
Prolexic recently updated its PLXportal to enable customers to view attack developments event-by-event after they have been mitigated, which helps to provide customers with a greater understanding of the attack.
“Today, business is defined by the availability, security and latency of Internet-facing applications, data and infrastructure,” said Scott Hammack, CEO at Prolexic. “Being able to rely on one provider for Internet performance and security greatly simplifies resolution of network availability issues and offers clients clear lines of accountability. We believe that, together, we will be able to deliver an unprecedented level of network visibility and protection.”