AKAM - Akamai Technologies acquires Linode for $900M accretive to FY22 earnings

Akamai Technologies (NASDAQ:AKAM) to acquire Linode, one of the easiest-to-use and most trusted infrastructure-as-a-service (IaaS) platform providers. Under agreement terms, all of the outstanding equity will be acquired for ~$900M in an asset purchase transaction which will lead Akamai to achieve cash income tax savings over the next 15 years that have an estimated net present value of ~$120M. Transaction is expected to close in 1Q22. Combining with Linode, which has made it simple, affordable and accessible for developers to consume cloud computing, Akamai will become the world's most distributed compute platform, from cloud to edge. For FY22, the acquisition of Linode is expected to add ~$100M in revenue and be slightly accretive to non-GAAP EPS by ~$0.05 to $0.06.

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Akamai Technologies acquires Linode for $900M, accretive to FY22 earnings