March 1, 2018

Boston Business Journal

Akamai reveals it paid nearly $400M for its two 2017 acquisitions

Cambridge-based Akamai Technologies Inc. paid $380 million in a pair of 2017 acquisitions meant to boost its web performance and cybersecurity offerings at a crucial time for the $11.5 billion company.

Akamai did not previously release the financial terms of the deals, but details were disclosed in a regulatory filing on Thursday.

The company paid $199.3 million in cash to acquire Silicon Valley-based Soasta Inc. in April 2017, and $180.3 million in cash to acquire Nominum Inc. in November. The deals represent Akamai's biggest buys since it acquired Prolexic Technologies for $392 million in February 2014.

The acquisitions come after an extended period of struggle for Akamai's core business of content delivery over the internet — the result of giant customers like Apple, Facebook, Netflix and Microsoft beginning to build their own in-house content delivery networks. Earlier this month, Akamai announced it is laying off about 400 people across the company after experiments meant to reignite growth in the content delivery business failed to have the expected impact.

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