Company expects to grow its presence in the region after acquiring Exceda
Content delivery specialist Akamai Technologies is aiming to expand its presence in the Latin America market through the acquisition of its largest channel partner in the region, Exceda.
The Lowdown: Akamai sees an opportunity to increase demand for its Content Delivery Network and its growing cloud security offerings through the deal. No financial details of the all-cash transaction were released. The acquisition is expected to close by the end of the year.
The Details: The acquisition comes 17 years after Exceda first became an Akamai channel partner. Soon after, the company became Akamai’s largest in Latin America, offering all of Akamai’s products to its customers. According to Akamai officials, Exceda is seeing increasing demand for its cloud infrastructure offerings and Web performance and security services.
With reach extending through seven Latin America countries, Exceda has offices in Argentina, Brazil, Chile, and Mexico.
The Impact: Through the acquisition, Akamai expects to sell more of its products in the region and add more support for its other Latin America partners.
Background: Akamai’s Web and cloud security units continue to see strong growth. In the second quarter, the company saw overall revenue increase 6% year over year, to $663 million. Its Web division’s revenue grew 8%, to $380 million, while revenue from its Cloud Security Solutions business unit jumped 32% to $205 million. Comcast this month said it’s working with Akamai to develop security solutions for small businesses.
The Buzz: “Akamai and Exceda both share the view that there’s growing customer demand for Akamai’s Content Delivery Network and cloud security services in Latin America,” said Rick McConnell, president and general manager of Akamai’s Web division. “Today, Akamai powers many of the top Latin American retail and large bank Websites in the region and securely delivers major online events for regional broadcasters. By combining the Akamai and Exceda teams, we believe we can scale our Latin America business faster, better enable existing and new partners, and improve experiences for more customers.”
“We look forward to leveraging our Akamai-related expertise and knowledge to deliver superior results for our customers,” said Exceda CEO Claudio Baumann. “We also welcome the opportunity to work with the broad array of Akamai partners to grow the company’s Latin America business.”