Akamai splashes out $268 million on Cotendo

James Stirling News
22 Dec, 2011

The platform company looks to ‘accelerate’ its cloud offerings with the pre-Christmas acquisition.

Akamai today confirmed it was purchasing Sunnyvale cloud computing firm Cotendo.

The deal was rumoured at the end of November, but has only seen the two companies admit to the buyout today. 

It will see a net cash payment to Cotendo of $268 million (£171 million), will enable the enterprise cloud platform provider to ‘accelerate’ their customers towards more mobile applications, provided by its new acquisition.

Cotendo was founded in 2008, with two bases – one in California and one in Israel. Despite having a team of just 150 employees, it has been building momentum with its integrated software to help deliver mobile applications using cloud computing.

It is similar to what Akamai does in content delivery but on a smaller scale with mobile in mind, meaning the two firms should compliment each other.  

"As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimisation, we are excited to be joining forces with Cotendo," said Paul Sagan, president and chief executive (CEO) of 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."

The deal is expected to close in the first half of 2012, as long as it passes the usual regulatory conditions.

Read more about:

Sign up for our free newsletter