Akamai LogoAkamai has just confirmed the acquisition of Israeli competitor Cotendo for $268 million this morning. News first broke of this acquisition on November 28th of this year.

“As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimization, we are excited to be joining forces with Cotendo,” said Paul Sagan, president and CEO of Akamai.  “Cotendo’s technology, partnerships and people are a strong complement to Akamai.  Together, we believe there is tremendous opportunity for our combined technologies as enterprises embrace the move to the cloud and seek solutions for an increasingly mobile world.”

This is a big win for Akamai, which helps companies improve website performance and handles roughly 30% of all internet traffic, as their stock price has been hammered this year. And by hammered, I mean it has plunged 57% over the last 12 months.

Cotendo, which was founded in 2008, has raised over $36 million in venture funding from Sequoia Capital, Benchmark Capital and Tenaya Capital. Like Akamai, the company focuses on cloud based acceleration services and performance monitoring for web and mobile sites.

“The Cotendo team is very proud of our accomplishments in delivering proven and effective solutions for accelerating Web and mobile assets.  By combining our innovative technology and employees with Akamai, we expect our customers and partners will gain access to a comprehensive, global platform and wider portfolio of leading-edge services supported by some of the most experienced providers in the industry,” said Ronni Zehavi, CEO and co-founder of Cotendo.  “We look forward to working with Akamai in an effort to create the strongest offering in the industry.”

Akamai, itself, was the subject of recent acquisition rumors and has has actually been the subject of more buyout rumors than any other American company from 2005 through 2010, data compiled by Bloomberg shows, being named as a target 21 times by electronic news services, brokerages or newspapers.

What’s even more interesting is that a year ago, Akamai sued Cotendo for patent infringement and  has bought the last two companies it has sued – Digital Island and Speedera, so this acquisition appears to follow the same pattern.