LONDON, UK / ACCESSWIRE / October 13, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Akamai Technologies, Inc. (NASDAQ: AKAM) ("Akamai"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=AKAM. The Company announced on October 11, 2017, that it has entered into an agreement to acquire Nominum, a market leader in DNS and enterprise security solutions for carriers. The all-cash transaction is expected to close later this quarter. The terms of the transaction were not disclosed. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Nominum is a privately-funded Company headquartered in Redwood City, California. The acquisition is intended to add complementary capabilities to Akamai's portfolio of security offerings while expanding Akamai's distribution to carriers that serve enterprise customers.
Akamai stated that in today's world, carriers and enterprises are being increasingly targeted by attackers looking to exploit weaknesses and gaps in cybersecurity defenses. The Company believes that by combining Nominum's carrier-grade cybersecurity solutions with Akamai's enterprise security offerings and threat intelligence, it will be able to serve a larger base of carrier and enterprise customers with more comprehensive security products. Akamai noted that these products will be designed to more effectively identify, block, and mitigate cybersecurity threats such as malware, ransomware, phishing, and data exfiltration.
Akamai expects the acquisition to be dilutive to non-GAAP earnings in the fiscal fourth quarter 2017 and in the fiscal year 2018 due to integration costs and the impact purchase accounting has on revenue recognition. The Company expects the transaction's impact on Q4 2017 results to be approximately $0.05, and approximately $0.11 for FY18. Akamai expects the acquisition to be accretive in 2019.
Bot Premier Manager Launch
On the same day of the acquisition announcement, Akamai announced the launch of Bot Manager Premier, which is designed to help organizations manage the impact of bots across their entire digital environment, including websites, mobile applications, and web APIs.
Akamai noted that a recent survey conducted by the Ponemon Institute, on behalf of Akamai, found that 54% of respondents reported that credential stuffing attacks are not only increasing but also becoming more severe; 68% indicated that they did not have good visibility into credential stuffing attacks; and 70% did not believe existing solutions were sufficient for preventing and containing these attacks.
Bot Manager Premier is designed to help online businesses address several advanced bot use cases as quickly, efficiently, and effectively as possible. These situations include credential abuse, gift card/credit card balance checking, loyalty program other forms of web fraud, as well as automated purchases of travel reservations or limited availability consumer goods.
Akamai noted that by utilizing the technology from its Cyberfend acquisition, Bot Manager Premier is able to detect bot activity disguised as human interactions, even if the bots continually modify behavior in an attempt to evade detection while targeting login and other transactional pages. Bot Manager Premier can also effectively manage other bot activity, such as scraping, content aggregation, and even "good" bots that can affect other aspects of a company website.
Last Close Stock Review
On Thursday, October 12, 2017, the stock closed the trading session flat at $50.52. A total volume of 1.18 million shares have exchanged hands. Akamai Technologies' stock price advanced 8.23% in the last one month. The stock is trading at a PE ratio of 28.85 and currently has a market cap of $8.61 billion.
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SOURCE: Pro-Trader Daily