Akamai Technologies Inc., one of the largest e-retail content delivery network and security providers, is purchasing performance analytics vendor Soasta Inc. Akamai did not disclose the purchase price, but says the all-cash transaction is expected to close early in the second quarter.
Akamai says the acquisition will give Akamai customers greater visibility into the business impact of their website and app performance.
With the acquisition, Akamai plans to enable its customers to measure how consumers experience their apps and sites and how that shapes their behavior. This will help Akamai clients prioritize performance optimization strategies, Akamai says. Using Soasta technology, Akamai customers also will be able to test improvements before going live and measure results after implementing changes.
Akamai will reveal more details about the purchase at its Investor Summit on Thursday. Privately-held Soasta is based in Mountain View, Calif.
“The addition of Soasta’s technology is intended to give our customers new ways to measure, optimize and validate the business impact of their web performance strategies,” says Ash Kulkarni, senior vice president and general manager, web performance and security for Akamai.
In October, Soasta and Akamai signed a deal to work together to offer Soasta’s real user monitoring capabilities and digital performance management tools to Akamai’s customers.
Soasta serves 53 of the Top 100 retailers in the Internet Retailer 2016 Top 500 Guide, including Apple Inc. (No. 2), Target Corp. (No. 22), Nordstrom Inc. (No. 18), Staples Inc. (No. 5) , The Home Depot Co. (No. 7), Sears Holdings Corp. (No. 14), Wal-Mart Stores Inc. (No. 4), Etsy Inc. (No. 23) and Best Buy Co. Inc. (No. 12).
Akamai serves 338 retailers in the Top 500, including Best Buy, Home Depot, Dell Inc. (No. 3), Macy’s Inc. (No. 6) and Gap Inc. (No. 20).
“As important as web and mobile site and application optimization is to online businesses, the ability to truly understand the result of those optimization strategies is crucial to continued success,” says Tom Lounibos, CEO and co-founder of Soasta. “This acquisition will provide Akamai customers, many of whom are already Soasta customers, with a new way to measure and test the optimizations they are making to their sites, and validate the actual business impact of their site’s performance.”
Soasta’s Real-User Monitoring (RUM) allows retailers to monitor their live sites and apps and flag issues as they arise. It also uses that data to analyze performance trends. Nordstrom, for example, has used Soasta’s mPulse RUM tool to identify and fix site problems—such as poorly performing third-party scripts—that were hurting customer satisfaction.
Soasta says retailers often gather massive amounts of data, but struggle to put it to use. Soasta’s digital performance management tools, which include CloudTest for testing, mPulse for user monitoring, the Data Science Workbench analytics engine and TouchTest for mobile testing, are designed to help retailers boost the performance of their sites by locating the biggest culprits leading to poor site performance. Rather than worrying about fixing hundreds of potential problems across thousands of pages, they can tackle the most critical problems affecting their business, Soasta says.
In March 2016, Soasta raised $30 million from Tennenbaum Capital and existing investors Canaan Venture Partners, Pelion Venture Partners and Formative Ventures to restructure existing debt and fund growth.
Late last year Akamai bought another e-commerce technology vendor with the purchase of startup Cyberfend, a company that aims to help retailers stop bots and malicious automated traffic that use stolen credentials, such as consumers’ emails and passwords, to log in to websites. The purchase price for the all-cash transaction was not disclosed.