Following StackPath’s decision to terminate its content delivery network operations, global CDN technology and cloud security company Akamai Technologies has acquired assets including select enterprise client contracts from StackPath. This comes as a result of StackPath’s decision to go out of business. Financial terms of the deal were not disclosed.
“In the process of migrating to Akamai Connected Cloud, StackPath’s enterprise CDN customers will also have the opportunity to tap into the full portfolio of Akamai security and cloud computing solutions,” said Adam Karon, COO and GM of Akamai’s Cloud Technology Group.
Akamai Technologies will expand its regular products and support to clients seeking for an enterprise solution to their content delivery, cybersecurity, and cloud computing demands. This will be accomplished by giving the opportunity to use the world's most distributed edge and cloud platform.“We look forward to welcoming these new enterprise customers and providing them with immediate access to the agility and scale of Akamai Connected Cloud so that they can create and deliver flawless digital experiences,” said Adam Karon, Chief Operating Officer and General Manager of Akamai’s Cloud Technology Group. “In the process of migrating to Akamai Connected Cloud, StackPath’s enterprise CDN customers will also have the opportunity to tap into the full portfolio of Akamai security and cloud computing solutions to assist them in powering and protecting their businesses well into the future.”
No StackPath Employees or Technologies Involved
Akamai believes that this deal will generate roughly $20 million in revenue and will be accretive to non-GAAP earnings per share by $0.03 - 0.05 for the full year in 2024. This will be accomplished via the purchase of around 100 enterprise customer contracts. Akamai forecasts that there would be no meaningful effect on either its sales or its non-GAAP profits per share for either the third quarter or the full year of 2023.
The deal does not involve the purchasing of any StackPath employees or any of their technologies. During the first three months, the two businesses will work together according to the terms of a transition services agreement.
