Akamai Technologies is acquiring Guardicore for $600 million. MSSPs that work with Akamai will gain network-segmentation software to block ransomware attacks, and boost MDR (managed detection and response) capabilities, MSSP Alert believes.
Gaurdicore's fiscal 2022 revenue is expected to be between $30 million and $35 million, so the deal's valuation is roughly 17X to 20X annual revenues.
This is technology M&A deal 599 that MSSP Alert and sister site ChannelE2E have covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Guardicore's Security Software, MSSP Partner Program
Guardicore develops network-segmentation software -- which limits user access to specific, authorized applications. By denying communication as the default, the threat surface and risk of exposure are drastically reduced, Akamai asserts.
Gaurdicore has had an MSSP partner program since at least 2018. The partner program allows MSSPs to provide managed detection and response (MDR), microsegmentation-as-a-service and managed cloud workload protection offerings, Guardicore said at the time.
GuardiCore was founded by Pavel Gurvich and Ariel Zeitlin, both of whom held cybersecurity roles in the Israeli Defense Forces (IDF). Ahead of the sale to Akamai, the company was backed by venture capital firms 83North, Battery Ventures and TPG Growth.
Akamai Acquires Gaurdicore: Executive Perspectives
"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. 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."
Added Guardicore CEO Pavel Gurvich:
"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. 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."
The deal is expected to close in the fourth quarter of 2021.