Akamai Technologies agreed to acquire Janrain, a privately-held company based in Portland, Oregon. Akamai did not disclose the amount of the all-cash transaction but said the Janrain acquisition would be slightly dilutive to its non-GAAP net income per share for 2019, in the range of $0.05 to $0.06, and to become accretive in 2020.
Janrain specializes in customer identity access management (CIAM), which helps enterprises to enhance digital trust by offloading login and registration workloads.
Akamai said the integration of Janrain's Identity Cloud with the Akamai Intelligent Edge Platform is expected to provide enhanced security, regulatory compliance and massive scale to online engagements. The company cited security benefits to CIAM customers in two critical areas: bot management and threat intelligence. Akamai Bot Manager mitigates the risks associated with credential abuse by detecting and managing bot activity at login and registration time and reducing fraud without negatively impacting the user experience. By leveraging Akamai threat intelligence, customers can make smart decisions about which users should be allowed to access registration and login pages based on reputation built on past online behavior.
"It is challenging to conduct business online without an inherent and expected level of digital trust," said Rick McConnell, president of Akamai Technologies and general manager of Akamai’s web division. "Janrain’s Identity Cloud, working together with Akamai’s Intelligent Edge Platform, will provide an added layer of security to allow our customers to know more about their end users and potentially drive additional revenues from that deepened relationship."
