Akamai Technologies Bolsters API Security Portfolio Via Neosec Acquisition

Akamai Technologies, Inc AKAM has agreed to acquire Neosec, an API detection and response platform based on data and behavioral analytics. Deal terms were not disclosed.
Neosec, headquartered in Palo Alto, California, and Tel Aviv, Israel, is a privately funded company.
Neosec's API security solution will significantly increase Akamai's visibility into the rapidly expanding API threat ecosystem.
For FY23, the transaction is anticipated to be slightly dilutive to non-GAAP EPS by ~$0.04 - $0.06 and is not expected to add any material revenue.
"Enterprises expose full business logic and process data via APIs, which, in a cloud-based economy, are vulnerable to cyberattacks. Neosec's platform and Akamai's application security portfolio will allow customers to gain visibility into all APIs, analyze their behavior and protect against API attacks," commented Mani Sundaram, executive vice president, and general manager, Security Technology Group, Akamai Technologies.
The combined API solutions are expected to put Akamai at the forefront of a critical emerging category of API security for which customers actively seek support.
The acquisition is expected to close in 2Q23.
Neosec's employees, including co-founder and CEO, Giora Engel, and co-founder and chief technology officer, Ziv Sivan, are expected to join Akamai's Security Technology business.
AKAM held cash and equivalents of $1.4 billion as of Dec. 31, 2022.
Price Action: AKAM shares traded lower by 0.18% at $82.67 on the last check Wednesday.