After buying NGINX for $670 million earlier in the year, F5 Networks is now on a real shopping spree. The application services company announced the acquisition of Shape Security, in a deal that’s reportedly worth $1 billion.
Announced earlier this week, the acquisition will improve F5’s application protection services. Shape Security builds fraud prevention systems for large corporations such as banks, government agencies or airlines.
“Beyond opening a fast-growing $4 billion adjacent market, Shape’s machine learning and AI-powered capabilities will scale and extend F5’s broad portfolio of application services and expand our ability to optimize and protect customers’ applications in an increasingly complex multi-cloud world,” F5 President and CEO François Locoh-Donou said in a statement.
According to Shape, the company mitigates north of a billion fake transactions every day, and has some $70 million annual recurring revenue. Customers are Fortune 50 enterprises, top US banks, global airline companies and credit card issuers.
“We believe that makes F5-NGINX-Shape absolutely essential to every digital organisation in the world,” Locoh-Donou added.
F5 expects its software revenue to grow up to 70 per cent next year, thanks to this acquisition. Break even for non-GAAP EPS is expected within two years.
Derek Smith, co-founder and CEO of Shape will remain at the company, and so will its 375 employees, all of which will now become F5 employees. The offices will also stay the same, it was said.