The stock of Akamai Technologies, Inc., (NASDAQ: AKAM) soared on Thursday on a report that the Internet services company is purchasing cloud services company Contendo.

The deal was reportedly made for $268 million in cash.

Akamai Technologies stock was up more than 17 percent on Thursday, or $4.58 per share share, to $31.25. The stock traded up as much as 18 percent during the day.

This is a very positive move, Michael Turits, a tech analyst at Raymond James, told Financial Times. Akamai are doubling down on the cloud or application acceleration side of their business, which has been fast growing and higher margin than their core video acceleration business. 

Akamai provides application performance solutions to accelerate and improve the deliver of content over the Internet. The company is based in Cambridge, Massachusets. Akamaki and Contendo made a joint announcement Thursday about the deal. Akamai will purchase all of Contendo's outstanding equity for $268 million.

Contendo was founded three years ago. The company has a technology center in Israel, and roughly half of its 100 employees work there.

Pending approval, the deal is expected to close within six months.

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 Akamai presidents and CEO Paul Sagan in a statement. Contendo'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.