Akamai to Buy Cotendo for $268 Million to Expand Cloud Services
December 22, 2011, 10:41 AM ESTBy Cecile Daurat
Dec. 22 (Bloomberg) -- Akamai Technologies Inc., whose server network lets businesses speed data delivery, agreed to buy Cotendo for about $268 million in cash to expand Internet- based and mobile services.
Cotendo, founded in 2008 and based in Sunnyvale, California, has about 100 employees, half of them in Israel, where the company has a technology center, according to a statement today.
The purchase is Akamai’s second largest after the $2.19 billion acquisition of InterVU Inc. in 2000, according to data compiled by Bloomberg. Cotendo will bring acceleration technologies based on the so-called cloud, a Web-based computing system, used by customers such as phone companies and social networks.
Cotendo’s investors include venture-capital firms Sequoia Capital and Benchmark Capital, as well as Juniper Networks Inc., according to its website.
Akamai, based in Cambridge, Massachusetts, rose 1.2 percent to $27 at 8:03 a.m. New York time before the opening of the markets. The company, with a market capitalization of $4.79 billion and about 2,300 employees, had slumped 43 percent this year before today.
--Editors: Cecile Daurat, James Callan
To contact the reporter on this story: Cecile Daurat in Wilmington at cdaurat@bloomberg.net
To contact the editor responsible for this story: Cecile Daurat at cdaurat@bloomberg.net
