Akamai Technologies (NASDAQ: AKAM) has acquired Tel Aviv, Israel-based Guardicore for $600 million. By incorporating Guardicore’s solutions for micro-segmentation in Akamai’s vast Zero Trust security portfolio, Akamai would be uniquely suited to provide comprehensive protections to the enterprise, defending against threat actors and the spread of malware and ransomware.
The micro-segmentation solution from Guardicore is intended to limit user access only to applications that are permitted to connect with each other. The threat and risk exposure are significantly reduced by refusing communication as the standard, thereby reducing malware distribution and safeguarding the flow of corporate data across the network.
This protection delivered by Guardicore extends beyond the data center to the cloud, including bare metal, virtual machines and containers across the data center.
The acquisition is scheduled to be completed in the fourth quarter of 2021, subject to customary closing conditions. The purchase of Guardicore will generate around $30–35 million in revenue for Akamai during fiscal year 2022. Morgan Stanley & Co. served as financial advisor to Akamai on the deal.
“Given the recent surge in ransomware attacks and increasingly stringent compliance regulations, investing in technologies to reduce the spread of malware has become mission critical,” said Tom Leighton, Chief Executive Officer (CEO) and co-founder of Akamai Technologies. “By adding Guardicore’s leading micro-segmentation products to Akamai’s comprehensive portfolio of Zero Trust solutions, we believe Akamai will be able to provide the most effective way to combat ransomware on the market today.”
Guardicore’s Micro-Segmentation Solution
Akamai’s Zero Trust security solutions help prevent attackers and malware on employee devices from gaining access to business infrastructures and applications, including WAF, Zero Trust Network Access, Dominion Name System and Secure Web Gateway (SWG), et cetera. However, companies would also require a second security layer to stop malware propagation after it takes a seat in corporate infrastructure in today’s environment.
This “highly needed capacity” is provided by Guardicore’s micro-segmentation solution, which would significantly reduce the impact of violations and the danger from ransomware. Their cybersecurity technology allows a deep insight of application flows between data center and cloud applications, which allow organizations to understand and defend their infrastructure from the heart of the company to the cloud more accurately. Infringements can thus be discovered early so that corrective action can be done as soon as feasible.
“Guardicore’s mission is to protect enterprises from damage caused by breaches, like ransomware, while safeguarding the critical assets at the heart of the network,” said Pavel Gurvich, co-founder and CEO at Guardicore. “The customer is able to reduce risk in a holistic way across all products, managing from a single console, versus many products and machines. My team and I greatly look forward to joining Akamai to protect the user and the enterprise – no matter what the user is doing or where end users and workloads are located.”