Akamai Technologies Inc. is acquiring Cotendo 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 definitive agreement calls for the transaction to occur in the first half of 2012.
In making the joint announcement, the companies said combining Akamai’s secure Internet, network and mobile platform with Cotendo’s integrated suite of web and mobile acceleration services will speed innovation in cloud and mobile optimization.
“As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimization, we are excited to be joining forces with Cotendo,” Paul Sagan, president and chief executive officer of Akamai, said in a statement. “Cotendo’s technology, partnerships and people are a strong complement to Akamai. Together, we believe there is tremendous opportunity for our combined technologies as enterprises embrace the move to the cloud and seek solutions for an increasingly mobile world.”
Founded in 2008, Cotendo is headquartered in Sunnyvale, Calif., with a technology center in Israel. It has about 150 employees, 50 of whom are based in Israel, and expects that the acquisition will not adversely affect any of them.
“The Cotendo team is very proud of our accomplishments in delivering proven and effective solutions for accelerating Web and mobile assets. By combining our innovative technology and employees with Akamai, we expect our customers and partners will gain access to a comprehensive, global platform and wider portfolio of leading-edge services supported by some of the most experienced providers in the industry,” said Ronni Zehavi, chief executive officer and co-founder of Cotendo. “We look forward to working with Akamai in an effort to create the strongest offering in the industry.”