In a move which will help Akamai Technologies get rid of its closest competitor in the mobile-network acceleration software arena as well as fortify its web acceleration business, the company has worked out a $268 million cash acquisition deal with Cotendo.

According to Morningstar analyst, the Cotendo takeover deal comes at a crucial time for Akamai which is looking to expand its offering in the cloud computing space. Even though Akamai enables firms to enhance their website performance by caching content and accelerating web applications, the company has been having a tough time in delivering cloud and mobile content applications.

The acquisition of the 2008-founded Sunnyvale, California-based Cotendo, which also has a technology center in Israel, will help Akamai make its web acceleration business notably stronger, given the fact that Cotendo is the provider of a technology which speeds up the delivery of content via cloud computing.

Specializing in acceleration of the delivery to mobile handsets and tablets, Cotendo boasts a content delivery mechanism that boasts the use of a worldwide network of distributed servers which place content physically close to consumers.

About the deal, which Akamai and Cotendo are likely to close in the first half of the coming year, Akamai President and CEO Paul Sagan said: “As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimization, we are excited to be joining forces with Cotendo.”