Akamai has completed its acquisition of Prolexic, a cloud-based security solutions provider.
First announced in December 2013, the deal was brought to the table by Akamai in order to improve the company's security solutions portfolio. In particular, it is hoped that Prolexic's technology will help protect enterprise IP applications -- including email, VPN and data transfer -- across data centers, and to defend again distributed denial of service (DDoS) attacks, which are becoming more common.
Under the terms of the agreement, Akamai paid roughly $370 million in cash for the Florida-based firm.
"Cyber-attacks are on the rise all over the world, with many resulting in significant economic or reputational damage to enterprises, governments, and end-users," said Tom Leighton, CEO of Akamai. "With our acquisition of Prolexic now complete, we are excited to extend the value of our combined teams and offerings to online businesses across all industries. Our focus is to optimize and secure the 'entire IP experience,' Web or otherwise, and to provide an unparalleled layer of protection against the most sophisticated of attacks without sacrificing site or application performance."
In the fourth quarter, Akamai delivered results that were better than expected, with earnings of $80 million, or 44 cents a share, on revenue of $436 million -- an increase of 15 percent year-on-year. Non-GAAP earnings were 55 cents a share.