Akamai Strengthens Portfolio with Edgio Acquisition

Akamai Technologies, Inc. (NASDAQ: AKAM), a leading cybersecurity and cloud computing company, has completed its acquisition of select assets from Edgio, including customer contracts from Edgio's businesses in content delivery and security, and non-exclusive license rights to patents in Edgio's portfolio. This strategic move is expected to bolster Akamai's customer base and enhance its security and cloud computing offerings.

The acquisition, valued at approximately $9-$11 million in revenue for the fourth quarter of 2024, will add several hundred net new customers to Akamai's portfolio. These customers will have a clear path to migrate to Akamai's platform, ensuring a smooth transition without impacting their business or that of their end users. Additionally, the new customers will have immediate access to Akamai's full range of security and cloud computing services, which run on the world's most distributed platform.

Akamai anticipates that the transaction will be dilutive to non-GAAP net income per diluted share by approximately $0.03-$0.05 in the fourth quarter, inclusive of transition service costs. However, for the full year 2025, the company expects the acquisition to add approximately $80-$100 million in revenue and be accretive to non-GAAP net income per diluted share by approximately $0.15-$0.20.

Ed McGowan, Akamai's Chief Financial Officer, expressed optimism about the transaction, stating, "We believe this transaction will create significant value for Akamai and our shareholders. By integrating these customers onto our platform with its advantageous cost structure, we expect to improve profitability and unlock new growth opportunities. We’re excited about the potential to cross-sell and up-sell our advanced security and cloud computing solutions to this expanded customer base."



The acquisition of Edgio's select assets is a strategic move for Akamai, allowing the company to expand its customer base and strengthen its position in the cybersecurity and cloud computing market. By integrating these new customers onto its platform, Akamai can leverage its advantageous cost structure to improve profitability and unlock new growth opportunities.



As Akamai continues to grow its customer base and enhance its security and cloud computing offerings, investors can expect the company to maintain its competitive edge in the market. With a strong focus on innovation and customer satisfaction, Akamai is well-positioned to capitalize on emerging opportunities and drive long-term growth.

In conclusion, Akamai's acquisition of select assets from Edgio is a strategic move that will strengthen the company's portfolio and enhance its security and cloud computing offerings. By expanding its customer base and leveraging its advantageous cost structure, Akamai is poised to improve profitability and unlock new growth opportunities. As the company continues to innovate and adapt to the evolving market landscape, investors can expect Akamai to maintain its competitive edge and drive long-term growth.