Akamai buys IaaS provider Linode for $900 mn

Akamai Technologies is set to acquire Linode, a leading infrastructure-as-a-service (IaaS) platform provider, for $900 million.
Akamai for IoT
“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,” said Tom Leighton, chief executive officer and co-founder, Akamai Technologies, in a news statement.

Akamai said the acquisition of Linode is anticipated to add approximately $100 million in revenue for fiscal year 2022.

Akamai expects to achieve cash income tax savings over the next 15 years that have an estimated net present value of approximately $120 million as a result of structuring the transaction as an asset purchase.

Akamai Technologies reported revenue of $905 million (+7 percent) in the fourth quarter and $3.46 billion (+8 percent) in 2021.

Akamai Technologies generated revenue of $1.335 billion (+26 percent) from Security Technology Group and $2.126 billion (flat) from Edge Technology Group in 2021.

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