Content delivery mainstay Akamai Technologies on Thursday said it plans to acquire cloud and mobile acceleration services upstart Cotendo in a move the two companies said will light a fire in the cloud and mobile optimization market.
The acquisition, which clocks in at a whopping $268 million, is expected to close in the first half of next year.
According to the two companies, their combination is expected to quicken the pace of innovation in the cloud and mobile optimization space, an area in which both companies have a foothold. Cambridge, Mass.-based Akamai's content delivery network offers a platform on which companies engage users over the Web, mobile and the cloud, while Cotendo offers an integrated suite of Web and mobile accelerations services, with a heavy focus on mobile.
"As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimization, we are excited to be joining forces with Cotendo," said Paul Sagan, president and CEO of Akamai, 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."
Sunnyvale, Calif.-based Cotendo was founded in 2008 and has roughly 100 employees, half of which are based in a technology center in Israel. Under the $268 million cash agreement, Akamai will acquire all of the outstanding equity of Cotendo.
"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, CEO and co-founder of Cotendo, said in a statement. "We look forward to working with Akamai in an effort to create the strongest offering in the industry."