Akamai Likely to Acquire Cotendo for $300 Million

On Sunday, Calcalist financial daily reported that Akamai Technologies is involved in talks to acquire Cotendo for around $300 million (£194 Million). Akamai Technologies helps various companies to improve their website performance and Israel based Cotendo is a rival company of Akamai Technologies.

Calcalist further revealed that, Cotendo products are known for accelerating websites as well as mobile sites and it has successfully raised $39 million in 3 rounds of funds from Benchmark Capital, Sequoia Capital and Tenaya Capital venture capital funds, reported Reuters.

Now, Cotendo is all set for posting sales of $20 to $30 million in the current year, whereas another $30 million in revenue is expected from distribution agreement closed with AT&T for the coming four years.

At present, 90 percent of content management as well as streaming market is controlled and managed by Akamai Technologies. Cotendo is not available for any comment and Akamai also did not make any comment on the rumours.

According to various reports, at present Microsoft, Facebook, Google and AT&T are some of the primary customers of Cotendo's acceleration technology.

Almost a year ago, Cotendo was sued by Akamai for infringement of patent rights and Akamai Technology is known for acquiring companies that it had sued earlier like Speedera and Digital Island.