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Akamai Technologies announced that it has entered into a definitive agreement to acquire Guardicore, based in Tel Aviv, Israel.
Akamai is aiming to expand its zero trust security portfolio by adding Guardicore’s micro-segmentation solution. Guardicore’s micro-segmentation solution is designed to limit user access to only those applications that are authorised to communicate with each other.
By denying communication as the default, the threat surface and risk exposure are drastically reduced, thereby limiting the spread of malware and protecting the flow of enterprise data across the network. This protection is designed to extend beyond the data centre to the cloud, including bare metal, virtual machines and containers.
Guardicore’s micro-segmentation solution provides this much-needed capability, substantially mitigating the impact of breaches and the threat posed by ransomware. Their solution enables deep visibility into application flows, across data centre and cloud applications, allowing businesses to granularly understand and protect their infrastructure, from the core of the enterprise to the cloud. As a result, breaches can be detected early on so that corrective actions can be taken as quickly as possible.
Given the recent surge in ransomware attacks and increasingly stringent compliance regulations, investing in technologies to reduce the spread of malware has become mission critical, according to Tom Leighton, chief executive and co-founder of Akamai Technologies.
“By adding Guardicore’s leading micro-segmentation products to Akamai’s comprehensive portfolio of zero trust solutions, we believe Akamai will be able to provide the most effective way to combat ransomware on the market today,” Leighton said.
Akamai currently offers a broad suite of zero trust security solutions, including Web Application Firewall (WAF), Zero Trust Network Access (ZTNA), Domain Name System (DNS) Firewall, and Secure Web Gateway (SWG), that help prevent attackers and malware on employee devices from gaining access to enterprise infrastructure and applications.
Due to the surge of ransomware attacks, enterprises need a second layer of defence to block the spread of malware after it has gained a foothold within the corporate infrastructure. The acquisition will enable Akamai to provide comprehensive protections to an enterprise, defending against threat actors and the spread of malware and ransomware.
According to Pavel Gurvich, co-founder and chief executive of Guardicore, the company's main aim is to protect enterprises from damage caused by breaches, like ransomware, while safeguarding the critical assets at the heart of the network.
“The customer is able to reduce risk in a holistic way across all products, managing from a single console, versus many products and machines. My team and I greatly look forward to joining Akamai to protect the user and the enterprise - no matter what the user is doing or where end users and workloads are located,” Gurvich said.
Under terms of the agreement, Akamai has agreed to acquire all of the outstanding equity of Guardicore for approximately $600 million, after giving effect to expected purchase price adjustments.
The closing of the transaction, which is subject to customary closing conditions, is expected to occur in the fourth quarter of 2021. For fiscal year 2022, the Guardicore acquisition is anticipated to provide about $30-35 million in revenue, and Akamai's non-GAAP operating margin is anticipated to be in the range of approximately 29-30 per cent.
The company’s non-GAAP operating margin is expected to return to at least 30 per cent for fiscal year 2023. On its next quarterly call currently scheduled for 2 November 2021, the company plans to provide third quarter 2021 financial results and full year 2021 financial guidance including any expected impact from Guardicore.
[Related: Ping Identity acquires Singular Key]
Nastasha is a Journalist at Momentum Media, she reports extensively across veterans affairs, cyber security and geopolitics in the Indo-Pacific. She is a co-author of a book titled The Stories Women Journalists Tell, published by Penguin Random House. Previously, she was a Content Producer at Verizon Media, a Digital Producer for Yahoo! and Channel 7, a Digital Journalist at Sky News Australia, as well as a Website Manager and Digital Producer at SBS Australia. Nastasha started her career in media as a Video Producer and Digital News Presenter at News Corp Australia.
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