Akamai to Acquire LayerX to Enhance Zero Trust Security
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: seekingalpha
- Acquisition Plan: Akamai intends to acquire browser security company LayerX for approximately $205 million, aiming to enhance its zero trust security portfolio, although this announcement led to a 1.2% drop in its premarket stock price.
- Market Demand: Akamai executives noted that customers' rapid adoption of AI has rendered existing controls ineffective in monitoring employee interactions with AI tools, and the acquisition of LayerX will bridge this gap, ensuring enterprises can operate safely and compliantly in a fast-evolving AI landscape.
- Financial Impact: The acquisition is expected to reduce Akamai's adjusted earnings by about $0.12 for fiscal year 2026, while LayerX is projected to have annual recurring revenue of approximately $10 million by year-end, indicating potential revenue implications for Akamai's future.
- Team Integration: Employees from LayerX, including co-founders Or Eshed and David Vaisbrud, will join Akamai's Zero Trust organization, further enhancing Akamai's expertise and competitive position in the cybersecurity sector.
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Analyst Views on AKAM
Wall Street analysts forecast AKAM stock price to fall
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 143.130
Low
89.00
Averages
103.73
High
115.00
Current: 143.130
Low
89.00
Averages
103.73
High
115.00
About AKAM
Akamai Technologies, Inc. is a cybersecurity and cloud computing company. The Company develops and provides solutions for global enterprises to build, secure and accelerate their applications and digital experiences. Akamai Connected Cloud, the Company's platform, is comprised of an edge and cloud architecture and underlying network for cloud computing, security and content delivery services. Its cloud computing services include compute, storage, networking, database and container management services that are required to build, deploy and secure applications and workloads. Its security solutions are designed to keep infrastructure, websites, applications, application programming interfaces and users safe from a multitude of cyberattacks and online threats while improving performance. Its content delivery solutions consist of Web and mobile performance focused solutions and media delivery solutions. It also specializes in serverless WebAssembly function-as-a-service (FaaS) technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Performance Comparison: In 1999, over 450 companies went public with Akamai Technologies seeing a staggering 524% first-day gain, while Figma and Circle Internet had first-day gains of 250% and 168% respectively, but current performances are more muted, reflecting a shift in market sentiment.
- Investment Strategy Recommendation: Analysts suggest that investors utilize ETFs like the Vanguard S&P 500 ETF to mitigate emotional decision-making by consistently investing, thus avoiding impulsive actions during market fluctuations.
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- Investment Strategy Recommendation: Analysts recommend that investors adopt a dollar-cost averaging strategy, particularly through the Vanguard S&P 500 ETF, which helps maintain stability during market fluctuations and removes emotional decision-making.
- Poor Individual Stock Performance: According to a JP Morgan study, about two-thirds of individual stocks have underperformed the Russell 3000 index since 1980, highlighting the challenges individual stocks face in recovering during market volatility and underscoring the advantages of index funds.
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See More
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- Frequent API Security Incidents: The 2026 API Security Impact Study found that 96% of financial service leaders reported at least one API security incident in the past year, the highest rate among all industries, indicating severe challenges faced by the sector.
- Prevalence of Ransomware Attacks: Nearly 80% of financial institutions experienced ransomware attacks in the last two years, yet less than half have adopted advanced security technologies, suggesting a lag in protective measures that could lead to significant losses.
- Regional Attack Variations: Cyberattack methods vary significantly by region, with EMEA accounting for 62% of DDoS attacks, APAC being the most targeted for Layer 7 DDoS at 52%, and North America experiencing the highest prevalence of web attacks at 44%, reflecting the complexity of the global cybersecurity landscape.
See More
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- Upsizing Option: The offering includes an option for initial purchasers to buy an additional $250 million of the 2030 notes and $250 million of the 2032 notes, which enhances market demand for these debt instruments and may provide the company with greater flexibility for future investment opportunities.
- Closing Timeline: The sale of the notes is expected to close on May 22, 2026, allowing the company ample time to plan the utilization of these funds effectively in upcoming projects.
- Increased Offering Size: The offering was upsized from the previously announced $1.3 billion, reflecting increased market confidence in Akamai, which could bolster the company's competitive position in the cloud computing and security sectors.
See More
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- Clear Use of Proceeds: The estimated net proceeds of approximately $2.958 billion will be allocated to accelerate capital expenditures for Cloud Infrastructure Services, aiming to rapidly expand its global footprint and enhance market competitiveness.
- Attractive Conversion Terms: The initial conversion price for the 2030 Notes is approximately $201.41 per share, representing a 42.5% premium over the closing price on the offering date, providing investors with potential capital appreciation opportunities and enhancing the notes' appeal.
- Risk Management Strategies: Akamai is concurrently engaging in convertible note hedge transactions to mitigate potential dilution upon conversion, ensuring the company maintains stable stock performance amid market fluctuations.
See More
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- Rising Bond Yields: The 10-year T-note yield surged to a 16-month high of 4.69%, triggering risk-off sentiment that led to increased stock liquidation, further heightening market uncertainty and potentially prompting the Fed to adopt tighter monetary policies.
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