Akamai (Nasdaq: AKAM) to Buy Cotendo for $268 Million to Expand Cloud, Mobile Services

Tallahassee, FL 12/12/11 (StreetBeat) -- Akamai Technologies Inc. (Nasdaq: AKAM), whose server network lets businesses speed data delivery, agreed to buy Cotendo for about $268 million in cash to expand Internet- based and mobile services.

Cotendo, founded in 2008 and based in Sunnyvale, California, has about 100 employees, half of them in Israel, where the company has a technology center, according to a statement today.

The purchase is Akamai’s second largest after the $2.19 billion acquisition of InterVU Inc. in 2000, according to data compiled by Bloomberg. Cotendo will bring acceleration technologies based on the so-called cloud, a Web-based computing system, used by customers such as phone companies and social networks.

Cotendo’s investors include venture-capital firms Sequoia Capital and Benchmark Capital, as well as Juniper Networks Inc., according to its website.

Akamai, based in Cambridge, Massachusetts, rose 1.2 percent to $27 at 8:03 a.m. New York time before the opening of the markets. The company, with a market capitalization of $4.79 billion and about 2,300 employees, had slumped 43 percent this year before today.

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