December 23, 2011 – Cloud platform provider Akamai Technologies Inc. will pay $268 million for Web and mobile cloud acceleration provider Cotendo.
Cotendo provides acceleration services and solutions for Web applications, static and dynamic Web content, SSL, performance monitoring and automatic failover, adaptive image compression, and real-time cloud reports and analytics. Akamai stated in a news release on the deal that Cotendo’s offerings would be applied in particular to mobile accessibility and functionality with Akamai’s existing cloud platforms for any device.
Cotendo CEO and co-founder Ronni Zehavi said in a news release that the combination of his company’s with Akamai is expected to create a “comprehensive, global platform and wider portfolio of leading-edge services supported by some of the most experienced providers in the industry.”
Cotendo was founded in 2008 and has about 100 employees split between its Sunnyvale, Calif. headquarters and a tech center in Israel. Its clients include Google, Digg and sites for the French government’s energy customer communications.
The deal involves a net cash payment and is expected to close in the first half of 2012, according to a news release. Massachusetts-based Akamai tallied $1.02 billion in revenue in 2010, up 19 percent from the previous year, according to online financial documents, with customer strengths in the media, retail and financial services industries.