Akamai is Reportedly in Advanced Talks to Acquire Noname Security for $500 Million - Latest Global News

Akamai is Reportedly in Advanced Talks to Acquire Noname Security for $500 Million

Israeli enterprise application security startup Noname Security is reportedly in advanced talks to be acquired by Akamai Technologies Inc. for $500 million, half the company’s valuation in its latest venture capital round.

The claim comes from TechCrunch, citing a person familiar with the deal. Although there was no second confirmation, there were reports in February that Noname Security was in negotiations to acquire it for “hundreds of millions of dollars” and Akamai was mentioned as a potential suitor.

The TechCrunch report claims that the potential deal, at least in its current form, would be for cash and that the deal is not final and could change or not happen at all.

Founded in 2020, Noname Security provides a holistic security platform that enables organizations to view and secure managed and unmanaged application programming interfaces. The company’s platform is designed to “eliminate API blindspots” and protect companies from data leaks, authorization issues, misuse, misuse and data corruption.

The company’s platform includes support for detection and analysis through remediation and testing, covering all aspects of API security. The platform creates a complete inventory of an organization’s APIs and then uses artificial intelligence and machine learning to detect attackers, suspicious behavior and misconfigurations.

In November, Noname Security announced integrations with leading security orchestration, automation and response platform providers Swimlane Inc., Tines Inc. and Palo Alto Networks Inc., allowing joint customers to automate and streamline their API security incident response processes.

Ahead of its potential acquisition, Noname Security had raised $220 million in venture capital, including a $135 million round at a $1 billion valuation in December 2021, according to Tracxn. Investors include Georgian Partners Inc., Lightspeed Venture Partners Inc. and Insight Partners LP, Cyberstarts Venture Capital Ltd., Next47 GmbH, Forgepoint Capital LLC and The Syndicate Group Inc.

If the deal is actually worth $500 million, the natural question is why the company’s valuation has fallen by half in two and a half years.

There’s no clear answer to that question, but one factor is that the company’s latest round came near the peak of investor activity in startups, a frenzy that has since slowed significantly, albeit with some small signs of recovery.

There’s another possibility: Noname is running out of money, as The Information reported in January that Noname Security was trying to raise money through a down round. Liquidated companies don’t try to raise money through relegation rounds unless necessary, and three months later the fact that they appear to be on the verge of being sold suggests that the company has a serious capital problem, right more precisely, a lack of capital from it.

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