Akamai (AKAM) in talks to buy Cotendo for $300 million

Akamai (AKAM) in talks to buy Cotendo for $300 million

Akamai Technologies, which helps companies improve website performance, is in talks to buy its smaller Israeli rival Cotendo for more than $300 million, the Calcalist financial daily reported on Sunday.Cotendo, whose products accelerate website and mobile sites, has raised $39 million in three funding rounds from venture capital funds Sequoia Capital, Benchmark Capital and Tenaya Capital, Calcalist said.

The company is set to post sales of $20-$30 million in 2011, while a distribution agreement with AT&T is expected to provide Cotendo with another $30 million in revenue in the next four years, the newspaper said.Akamai is believed to control 90 percent of the content management and streaming market.Cotendo was unavailable for comment. Calcalist cited Akamai as saying it did not comment on rumors.

Akamai Technologies, Inc. (Akamai) provides services for accelerating and improving the delivery of content and applications over the Internet; ranging from live and on-demand streaming video capabilities to conventional content on Websites, to tools that help people transact business and reach out to new and existing customers. Shares of AKAM traded higher by 0.11% or $0.03/share to $26.31. In the past year, the shares have traded as low as $18.25 and as high as $54.65. Resistance level is $30.47 and support level is  $26.05 which is  50 day moving average. Here is full story- Right Here

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