Akamai snaps up API security startup Neosec

Akamai Technologies has announced it has entered into a definitive agreement to acquire Israeli API security startup Neosec. 

Headquartered in Palo Alto, California and Tel Aviv, Israel, Neosec provides an API detection and response platform based on data and behavioral analytics. 

Akamai said its acquisition will complement its own application and API security portfolio by extending its visibility into the rapidly growing API threat landscape, helping customers to discover all their APIs, assess their risk, as well as respond to any vulnerabilities and attacks.

The acquisition will see Neosec’s staff - around 40 people - join Akamai’s Security Technology Business, along with co-founder and CEO Giora Engel, and co-founder and CTO Ziv Sivan. 

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Financial terms of the transaction were not disclosed but the acquisition is expected to close during the second quarter of 2023. 

Akamai will discuss any expected impact on its financials on its quarterly earnings call next month. 

On the product front, however, the firm expects the freshly combined solutions to put the business at the “forefront of a critical emerging category of API security”. 

The API security solutions market has seen rapid expansion in recent years due to API-based architectures and microservices now being at the core of every application developed today, from B2B to web and mobile applications. 

This widespread use makes them a primary target for attackers, Akamai said. 

Additionally, regulatory compliance laws - such as FFIEC, SOC, GDPR, HIPAA and PCI DSS - require enterprises to strengthen their security measures on APIs.

“With rapidly accelerating digital transformation, APIs are the new frontier for digital business and the enablement of critical business functions,” said Mani Sundaram, executive vice president and general manager of Akamai’s Security Technology Group. 

"Enterprises expose full business logic and process data via APIs, which, in a cloud-based economy, are vulnerable to cyber attacks. 

“Neosec’s platform and Akamai’s application security portfolio will allow customers to gain visibility into all APIs, analyze their behavior and protect against API attacks."

Neosec co-founder and CEO Giora Engel said its platform’s complete visibility into all API activity, combined with its use of behavioural analytics, is what sets the company apart from other providers.   

“Unlike other solutions, Neosec delivers rich, XDR-like API visibility combined with detection and response capabilities that enable full investigation and threat hunting,” he said. 

“Ultimately, Akamai customers will have a better view into all of their API activity, to identify vulnerabilities and threats before they are exposed, and detect attacks in runtime.”