Benzinga | Sep 29, 2021 12:33PM EDT

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.