F5, an American company that offers application delivering networking, has made it official that it is going to acquire Cloud software and application security provider Volterra for $500 million.
As cloud infrastructure looks insufficient with technology related to application security, F5 has used Volterra’s multi cloud application security and load balancing software in its services.
Thus, by creating world’s first of its kind Edge 2.0 platform for businesses, Washington based F5 Networks hopes to improve the performance and security of the applications running on different platforms without the need to make the infrastructure invisible.
F5 that was initially into the development of load balancing software has recently stepped into application security, DDoS defense, and Cloud based Cyber Threat- mostly offering support to data center and hybrid cloud environments. Volterra’s tech inclusion is said to boost the objectives of the company to perpetuate further in business.
Financial terms of the deal are yet to be disclosed to the media. However, a source from the management confirmed that Volterra’s CEO and founder Ankur Singla will play a vital role in the company management from now on and the deal closure is expected to close at $440 million in cash and $60 million in stock- subject to the takeover abides by the rules of the SEC.
Note- F5’s Dec’2020 revenue was raised to a range of $626 million higher than the outlook prediction offered in October’19 of $595 million. The company plans to make a billion dollar worth repurchases in the next two years i.e. over ten percent of the company’s market capitalization.