Akamai To Acquire Guardicore For $600M To Beat Ransomware

Akamai Technologies Inc (NASDAQ:AKAM) agreed to acquire Tel Aviv, Israel-based Guardicore for $600 million.
Guardicore's micro-segmentation solution into Akamai's extensive Zero Trust security portfolio will help provide comprehensive protection to the enterprise, defending against threat actors and spreading malware and ransomware.
By adding Guardicore's leading micro-segmentation products to Akamai's comprehensive portfolio of Zero Trust solutions, Akamai will be able to provide the most effective way to combat ransomware on the market today.
Akamai plans to provide any expected impact from Guardicore during the Q3 FY21 earnings call on November 2.
The acquisition will likely provide $30 million - $35 million in FY22 revenue. Akamai sees a non-GAAP operating margin of 29%-30%. Akamai sees a non-GAAP operating margin of at least 30% for FY23.
Akamai held $1.4 billion in cash and equivalents as of June 30.
Price Action: AKAM shares traded lower by 0.35% at $105.75 on the last check Wednesday.