Akamai acquires IaaS platform Linode for $900 million

Content delivery network Akamai has announced the acquisition of IaaS platform Linode for approximately $900 million, to become the world’s most distributed compute platform

The deal will see developer-friendly cloud computing capabilities from Linode be combined with Akamai‘s edge platform and security services, in order to build a new cloud platform for content delivery.

Expected to close in the first quarter of 2022, subject to customary closing conditions, the acquisition of Linode by Akamai comes as modern, secure digital experiences remain paramount in business.

Digital environments such as the metaverse are rising up the corporate agenda for many sectors, converging media, entertainment, technology, ecommerce, financial services, and online games.

Creating a seamless experience for users without disruption requires complete cloud-to-edge connectivity, a goal that Akamai aims to attain through this deal.

Linode has looked to make cloud computing simple, affordable and accessible for developers, through virtual private servers.

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“Akamai has been a pioneer in the edge computing business for over 20 years, and today we are excited to begin a new chapter in our evolution by creating a unique cloud platform to build, run and secure applications from the cloud to the edge,” said Dr. Tom Leighton, CEO and co-founder of Akamai Technologies.

“This a big win for developers, who will now be able to build the next generation of applications on a platform that delivers unprecedented scale, reach, performance, reliability and security.​”

Christopher Aker, founder and CEO of Linode, commented, “We started Linode 19 years ago to make the power of the cloud easier and more accessible.

“Along the way, we built a cloud computing platform trusted by developers and businesses around the world. Today, those customers face new challenges as cloud services become all-encompassing, including compute, storage, security and delivery from core to edge.

“Solving those challenges requires tremendous integration and scale, which Akamai and Linode plan to bring together under one roof. This marks an exciting new chapter for Linode and a major step forward for our current and future customers.”

As a result of structuring the transaction as an asset purchase, Akamai expects to achieve cash income tax savings over the next 15 years that have an estimated net present value of approximately $120 million.

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Aaron Hurst

Aaron Hurst is Information Age's senior reporter, providing news and features around the hottest trends across the tech industry.