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Akamai Technologies (NASDAQ:AKAM) is in advanced discussions to purchase cybersecurity startup Noname Security for $500 million.
The proposed transaction is for all cash, and it hasn’t been finalized at this time, according a TechCrunch report late Friday, which cited a person familiar with the deal.
Noname was founded in 2020 and headquartered in Palo Alto, though the firm has Israeli roots, according to the report. The cybersecurity firm was valued at $1 billion in December 2021 when it raised $135 million in a Series C fundraising round, which was led by Georgian and Lightspeed.
The transaction values Noname at about 15X annual recurring revenue, the person told TechCrunch. Noname’s approximately 200 employees are expected to move to Akamai (AKAM) if the sale closes.
Akamai declined comment to TechCrunch. A Noname Security spokesperson told the publication that the company doesn’t comment on rumors or speculation.
Israel’s Calcalist reported in February that Noname was in talks to be sold for hundreds of millions of dollars with Akamai (AKAM) one of a number of companies interested in a purchase.
Akamai (AKAM) is scheduled to report its Q1 results on May 9.