Akamai Technologies Surges After In Talks To Buy Cotendo


Akamai Technologies, Inc. (NASDAQ: AKAM) gained 5.64% to $27.80 in the morning hours after the Calcalist financial daily reported that Akamai is in talks to buy its smaller Israeli rival Cotendo for more than $300 million.

Cotendo, whose products accelerate website and mobile sites, has raised $39 million in three funding rounds from venture capital funds Sequoia Capital, Benchmark Capital and Tenaya Capital.

The company is set to post sales of $20-$30 million in 2011, while a distribution agreement with AT&T is expected to provide Cotendo with another $30 million in revenue in the next four years.

Akamai Technologies, Inc. (Akamai) provides services for accelerating and improving the delivery of content and applications over the Internet; ranging from live and on-demand streaming video capabilities to conventional content on Websites, to tools that help people transact business and reach out to new and existing customers.

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