Akamai Technologies, Inc. has announced plans to acquire Noname Security, a leading API security vendor, for $450 million. This strategic move aims to bolster Akamai’s API security capabilities, addressing the increasing demand for robust API protection. Founded in 2020 and based in San Jose, California, Noname Security quickly rose to prominence in the API security sector, reaching unicorn status in 2021 with a valuation of $1 billion. Despite selling for less than half its last private funding round valuation, Noname’s integration into Akamai’s portfolio is expected to significantly enhance Akamai’s existing API security solutions.
The acquisition is driven by the growing use of APIs, which has led to a corresponding rise in security risks. Akamai’s own data shows a 109% year-over-year increase in API attacks, highlighting the critical need for comprehensive API protection. Noname Security’s CEO and co-founder, Oz Golan, emphasized the synergy between the two companies, stating that the combined strengths will offer a solution for any type of customer, regardless of where their applications are located—whether in the cloud, at the edge, on-premise, or on other vendor platforms.
The deal is expected to close in the second quarter of 2024, subject to customary closing conditions. It is anticipated to deliver approximately $20 million in revenue for Akamai in the fiscal year 2024 and will see Noname’s more than 200 employees, including Golan, join Akamai’s Security Technology Group. This acquisition underscores Akamai’s commitment to leading the charge in API security, providing developers and security operations teams with the tools needed to identify and mitigate vulnerabilities in an increasingly complex digital landscape.
Akamai’s acquisition of Noname Security represents a pivotal moment in the cybersecurity landscape, enabling the company to provide a complete API security suite. This includes the ability to discover “shadow” APIs, detect vulnerabilities and attacks, and offer greater deployment choices for customers across all environments. As the use of APIs continues to expand, Akamai’s strengthened capabilities will play a crucial role in securing the digital infrastructure of numerous organizations worldwide.
