CDN services and cloud security solutions provider, Akamai Technologies announced that the company has entered into a definitive agreement to acquire infrastructure-as-a-service platform provider, Linode. With the agreement, Akamai will acquire all of the outstanding equity of Linode for approximately $900 million. Akamai announced that the transaction is expected to close in 2022’s first quarter. With the acquisition, Akamai expects to add approximately $100 million in revenue during the fiscal year 2022.
Financial results
Akamai also reported its financial results for the fourth quarter and fiscal year ended December 31. For the fourth quarter, Security Technology Group revenue was $365 million, increased by 23% year-over-year and 25% when adjusted for foreign exchange. For the same period, Edge Technology Group revenue was $541 million, down 2% year-over-year and down 1% when adjusted for foreign exchange.
Fourth quarter highlights
- Revenue of $905 million, up 7% year-over-year and up 8% when adjusted for foreign exchange
- Security Technology Group revenue of $365 million, up 23% year-over-year and up 25% when adjusted for foreign exchange
Full-year highlights
- Revenue of $3.5 billion, up 8% year-over-year and up 7% when adjusted for foreign exchange
- GAAP operating margin of 23% and non-GAAP operating margin of 32%
- GAAP EPS of $3.93, up 17% year-over-year, and non-GAAP EPS of $5.74, up 10% year-over-year
Dr. Tom Leighton, chief executive officer and co-founder of Akamai Technologies said,
« The opportunity to combine Linode’s developer-friendly cloud computing capabilities with Akamai’s market-leading edge platform and security services is transformational for Akamai. Akamai has been a pioneer in the edge computing business for over 20 years, and today we are excited to begin a new chapter in our evolution by creating a unique cloud platform to build, run and secure applications from the cloud to the edge. This is a big win for developers who will now be able to build applications on a platform that delivers unprecedented scale, reach, performance, reliability and security. »