Shares of Akamai (NASDAQ: AKAM) dropped nearly 4.6 percent Thursday after the company announced it is acquiring digital analytics firm Soasta.
The deal is scheduled to close early the second quarter and is expected to be a slight dilution to non-GAAP earnings for the fiscal year 2017, in the range of 6 to 7 cents.
Akamai CFO Jim Benson said Thursday that the firm's interim earnings before interest, tax, depreciation and amortization (EBITDA) margin targets of 37 to 39 percent could last one to two years longer than expected, StreetAccount said. In the fourth quarter, the adjusted EBITDA margin came in at 40 percent, down 1 point from the same period last year, Akamai said.
The online and mobile solutions company said after the close Wednesday that it agreed to buy the privately held Soasta in an all-cash transaction for an undisclosed sum.
Soasta is expected to "give Akamai customers greater visibility into the business impact of their website and application optimization strategies," according to a press release.
Shares of Akamai year-to-date performance
With Thursday's decline, Akamai shares are down 9.2 percent year to date.
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