SecurityDAM acquisition will most likely amplify Radware’s non-GAAP earnings in 2023
Radware, an American Israeli cybersecurity and applications delivery product provider, has been sourcing scrubbing center services from Tel Aviv-based SecurityDAM to support its cloud DDoS protection service for nearly 8 years.
Now, the software company has acquired SecurityDAM for $30 million; comprising of a $12.5 million variable depending on performance displayed by Radware’s cloud DDoS protection service after the agreement.
Roy Zisapel, President and CEO of Radware, broadcasted the company’s commitment towards ensuring customer protection with state-of-the-art, frictionless security, which will enable Radware to design advanced digital strategies without getting distracted by a weak defence system.
The CEO also highlighted that the primary goal of such an initiative is to boost innovation and catalyse expansion in order to deliver cloud security capabilities to an even larger customer base.
While Radware’s stock stooped down by 0.81%, reflecting $31.76 per share in midday trading, the SecurityDAM acquisition announced prior is expected to raise Radware’s gains on a non-GAAP basis in the following year.
Since 2014, SecurityDAM has provided a range of services to Radware, notably capabilities such as traffic diversion from an attacked customer site to a scrubbing center, which allows mitigation of attack and helps address software license to control and assess DDoS attacks.
According to Radware, for last three years, SecurityDAM has consecutively delivered services worth $11.5 million in 2021, $10.2 million in 2020 and $7.1 million the year prior.
Founded back in 2012, SecurityDAM is a small team of 63 employees and hasn’t nabbed any outside funding so far.
The Zisapel Duo – Yehuda Zisapel, Radware Chairman and CEO Roy Zisapel – hold an ownership stake in SecurityDAM, wherein the former nabs a majority stake while the latter holds a minority stake.
Since the duo secured an ownership stake in the DDoS operator, Radware assembled a special committee of independent board members only to review the SecurityDAM acquisition transaction and subsequently negotiate and finalise the terms of the agreement.