Filing Flows › Akamai Technologies (AKAM) › Takeover & LBO
Is Akamai Technologies (AKAM) a takeover target?
A leveraged buyout at today's price plus 30% ($120.54 a share) would return a loss of about 8% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $120.54 | today's $92.72 plus 30% |
| × shares | 151.2 million | |
| = Equity value | $18.2B | |
| + Debt refinanced | $0 | |
| − Cash | $3.5B | |
| = Enterprise value | $14.7B | 12.9× EBITDA of $1.1B |
| Fees | $294M | 2% of the price |
| New debt | $6.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $8.7B | 58% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.7B | $1.2B | $480M | −$244M | $6.5B |
| Year 2 | $4.9B | $1.3B | $499M | −$246M | $6.8B |
| Year 3 | $5.1B | $1.3B | $518M | −$249M | $7.0B |
| Year 4 | $5.3B | $1.4B | $537M | −$254M | $7.3B |
| Year 5 | $5.5B | $1.4B | $556M | −$261M | $7.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $13.1B | |
| − Debt left | $7.5B | |
| = Buyer's equity | $5.6B | |
| Money multiple | 0.64× | on $8.7B put in |
| Buyer's yearly return (IRR) | −8.4% |
Price against return
What the buyer makes at other premiums over today's $92.72.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $101.99 | −0.9% |
| 20% | $111.26 | −5.1% |
| 30% | $120.54 | −8.4% |
| 40% | $129.81 | −11.2% |
| 50% | $139.08 | −13.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.4B | |
| EBITDA, last 12 months | $1.1B | 26.0% of revenue |
| Depreciation and amortization | $743M | |
| Capital spending | $893M | |
| Debt | $0 | |
| Cash | $3.5B | |
| Share price | $92.72 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 6.2% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 30% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Akamai Technologies would cost about $129.81 a share, $19.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $106.35 | $16.1B |
| Median | 40% | $129.81 | $19.6B |
| High end (a quarter paid more) | 60.2% | $148.54 | $22.5B |
Akamai Technologies' latest quarter
Akamai Technologies, Q3 2026: revenue $1.1B (+6% year over year), operating margin 9.7%, net earnings $117M, operating cash flow $433M. The chart follows the revenue to costs, profit and cash.
Questions
Is Akamai Technologies being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Akamai Technologies?
A leveraged buyout at today's price plus 30% ($120.54 a share) would return a loss of about 8% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Akamai Technologies cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Akamai Technologies would cost about $129.81 a share, $19.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.