Highlights:

  • Established in 2020, the Noname Security platform enables enterprises to visualize and secure managed and unmanaged application programming interfaces (APIs). Crafted to “eliminate API blind spots,” the company’s platform shields enterprises from data leakage, authorization issues, abuse, misuse, and data corruption.
  • Noname’s technology will also enable Akamai to offer a comprehensive API security suite, allowing customers to uncover “shadow” or unmanaged APIs and identify vulnerabilities and attacks.

Akamai Technologies Inc., a content delivery network and cloud services provider, recently revealed its intention to acquire an enterprise application programming security startup, Noname Security, for approximately USD 450 million.

In February, news of the Akamai Technologies acquisition of Noname Security emerged. Recent updates suggest ongoing advanced discussions, with a potential acquisition price of USD 500 million being considered.

Established in 2020, the Noname Security platform enables enterprises to visualize and secure managed and unmanaged application programming interfaces (APIs). Crafted to “eliminate API blind spots,” the company’s platform shields enterprises from data leakage, authorization issues, abuse, misuse, and data corruption.

The Noname platform encompasses support for discovery and analysis, extending to remediation and testing, thereby addressing every facet of API security. The platform generates a comprehensive inventory of an organization’s APIs and employs artificial intelligence and machine learning to identify attackers, suspicious behavior, and misconfigurations.

Acquiring Noname could increase Akamai’s scale through additional sales and marketing resources and established channel and alliance relationships. Noname’s technology will also enable Akamai to offer a comprehensive API security suite, allowing customers to uncover “shadow” or unmanaged APIs and identify vulnerabilities and attacks.

“API development continues to proliferate as customers prioritize their investments in application modernization and digital transformation initiatives,” Oz Golan, the CEO and Co-founder of Noname, stated in a statement. “Combining Noname with Akamai’s API Security offering will provide a solution for any type of customer. No matter where the customer’s applications reside – be it in the cloud, natively on the edge, on-premise, or on other vendor platforms – they will be protected.”

Ahead of its acquisition, Noname Security had amassed USD 220 million in venture capital, as reported by Tracxn. This included a noteworthy funding round of USD 135 million, valuing the company at USD 1 billion, which took place in December 2021. Investors in Noname Security comprise a notable roster, including Georgian Partners Inc., Insight Partners LP,  Lightspeed Venture Partners Inc., Next47 GmbH, Forgepoint Capital LLC, Cyberstarts Venture Capital Ltd., and The Syndicate Group Inc.

The acquisition, contingent upon customary purchase price adjustments and conditions, is anticipated to be finalized in the second quarter of this year. Akamai also highlighted that the acquisition is projected to yield approximately USD 20 million in additional revenue, equivalent to 10 cents per adjusted share, in its fiscal year 2024.